Nvidia is in the process of creating a more advanced AI chip intended for the Chinese market, surpassing the current H20 model that is permitted for sale there.
This new chip, which is expected to be called the B30A, represents a less sophisticated alternative to the Blackwell B300 design, currently barred from being sold in China due to export controls, as reported by two sources familiar with the situation.
The B30A could deliver about half the computing power of the B300. It’s interesting to note that the H20 is thought to be “outdated” after Trump suggested the introduction of new models with potential improvements in energy efficiency of “30-50%.”
Commerce Secretary Howard Lutnick mentioned on Tuesday that he wouldn’t be surprised if CEO Jensen Huang had ambitions to sell newer chips to China.
“I can totally picture him pitching the president,” Lutnick commented during an appearance on CNBC’s “Scoke on the Street.”
He added, “I hear him present his ideas, and the president tends to listen to what our major tech firms have to say before making decisions.”
Nvidia is reportedly planning to deliver samples of the new chip to Chinese clients for testing as soon as next month, according to insider sources.
“We’re looking at a variety of products for our future plans to ensure we remain competitive, as long as regulations permit,” an Nvidia spokesperson shared in a statement.
“Everything we provide is fully verified by relevant authorities and is aimed solely at beneficial commercial use.”
Recently, Trump unveiled a groundbreaking agreement that allocates 15% of revenue from sales in China to the US government in return for supporting sales of H20 and AMD’s MI308.
Nvidia designed the H20 model to navigate export restrictions, especially during the Biden administration, but was instructed to stop sales last April.
Last week, Trump suggested a 20% reduction in Nvidia’s sales to China; however, Huang stated it had been negotiated down to 15%.
There remains uncertainty about whether Nvidia will gain the necessary regulatory approval to sell these chips, given the substantial national security concerns regarding allowing China to lead in AI development.
Moreover, there’s been a growing skepticism towards Nvidia in China, as state media warn of the security risks presented by the chips, which Nvidia disputes.
Nonetheless, Nvidia seems intent on maintaining its presence in the Chinese market amidst competition from local companies such as Huawei.
Interestingly, around 13% of Nvidia’s revenue over the past fiscal years has stemmed from China.
