Nvidia is reportedly gearing up to launch a modified variant of its H20 artificial intelligence (AI) chip for China, aiming for a July release.
The latest move comes as the U.S. government increases restrictions on advanced performance semiconductor exports to China, exerting immense pressure on the company to downgrade to follow export regulations, Reuters reported.
Nvidia to launch downgraded H20 AI chip for China
Initially, the H20 was considered the most advanced AI-powered chip, integrated with cutting-edge technology that the company could legally sell in China.
However, it was banned last month after US officials informed Nvidia that it would need a license for export.
In response, Nvidia has redesigned the chip to minimise its features to meet new US technical limits.
Some downstream partners would expectedly be able to adjust module configurations to perform under the new restrictions.
CEO Jensen Huang visited Beijing in April, after Washington announced stricter licensing thresholds, emphasising the company’s unwavering commitment to serving Chinese customers.
However, Nvidia refused to comment on the latest chip and its launch date.
The US Commerce Department has yet to issue a response.
Earlier, Nvidia revealed that a $5.5 billion charge linked to unsold H20 processors affected by export policy changes.
The company’s stock faced a decline of nearly 5% after the announcement, reflecting investor concerns over continued regulatory challenges.