NVIDIA and AMD Unveil AI Chips Tailored for Chinese Market Amid US Export Ban
In a strategic move to navigate ongoing US export restrictions, top chipmakers NVIDIA and AMD are preparing to release new AI chips tailored for the Chinese market. According to Taiwanese outlet Digitimes, both companies will begin shipping modified GPUs by July 2025, ensuring compliance with US regulatory limitations on advanced semiconductor technology exports.
NVIDIA’s Solution: Stripped-Down B20 Chip
NVIDIA is expected to introduce a scaled-down AI graphics processor, codenamed “B20”, engineered specifically for Chinese buyers. This follows news from Reuters that the company is also working on a budget AI chip based on its Blackwell architecture. The new Blackwell variant is anticipated to be priced between $6,500 and $8,000, significantly lower than the $10,000 to $12,000 price tag of its current H20 chips.
However, these adaptations come at a cost. NVIDIA recently disclosed a $4.5 billion loss in Q1, attributed to licensing constraints affecting H20 chip sales in China. Furthermore, an additional $2.5 billion worth of unsold inventory was also impacted. The company now projects an $8 billion revenue hit in Q2 due to these restrictions.
AMD’s Entry: Radeon AI PRO R9700
Meanwhile, AMD is poised to enter the Chinese AI hardware space with its new Radeon AI PRO R9700—a workstation GPU tailored for artificial intelligence workloads. The chip aims to offer a compliant alternative to meet growing AI demands in the region without breaching US sanctions.
A Tactical Pivot in the Global AI Race
As AI adoption accelerates globally, China remains a key market for high-performance chips. These adjusted launches signal a critical shift by NVIDIA and AMD as they attempt to balance innovation with compliance. The new chips are not only a response to geopolitical constraints but also a calculated strategy to retain market share and limit financial losses in one of the world’s largest tech ecosystems.
With billions already lost and more on the line, July’s rollout will be a major milestone in the tech industry’s ongoing tug-of-war between regulatory pressure and global AI expansion.
