Nvidia is developing a stripped-down and cheaper AI accelerator based on the Blackwell architecture specifically for the Chinese market. As Reuters learned from informed sources, the new product will cost from $6,500 to $8,000, which is much lower than the price of the banned H20 model ($10,000-$12,000). Mass production could begin as early as June.
Image source: NVIDIA
The accelerator will be based on the RTX Pro 6000D server graphics card and will receive regular GDDR7 memory instead of specialized HBM (High Bandwidth Memory). It will also not use TSMC’s advanced CoWoS chip packaging technology, which will simplify production and reduce costs. There is no official name yet, but presumably the new product may be called B40 or 6000D.
It is noted that the sanctions have seriously affected Nvidia’s business. In the last financial year alone, China brought the company 13% of its revenue. After the restrictions on the supply of H20, Nvidia lost about $15 billion in potential sales and was forced to write off $5.5 billion in inventory. The American company’s share of the Chinese market fell from 95% to 50%, and its main competitor was the Chinese company Huawei with the Ascend 910B chip.
Nvidia CEO Jensen Huang has warned that if export restrictions continue, more Chinese customers will switch to local solutions. The new rules cap memory bandwidth at 1.7-1.8 TB/s, while the H20 could deliver up to 4 TB/s. Chinese broker GF Securities estimates that the new GPU will operate close to those limits thanks to GDDR7.
«Until we have a final product design and approval from the U.S. government, we are effectively closed to the $50 billion Chinese data center market,” Nvidia said. Meanwhile, sources say Nvidia is working on another Blackwell-based accelerator for China, scheduled for release in September. Its specifications have not yet been disclosed.