Jensen Huang's big decision: Reports say Nvidia will tweak H20 chip for China to overcome U.S. ban, will Donald Trump allow it?

Nvidia CEO Jensen Huang is set to make a daring move to ensure his company maintains a foothold in one of its most pivotal markets: China, as per a report.

The Plan for a Modified H20 Chip

Nvidia intends to launch a downgraded version of its H20 artificial intelligence chip for China specifically, according to Reuters. This follows recent US export controls that stopped sales of the original version of the H20 model without a license, as reported by Reuters.

The launch of the new chip will be in July, and Nvidia has already alerted its largest Chinese customers, such as the biggest cloud suppliers, including Tencent, Alibaba, and ByteDance, about the release, according to a report.


The chipmaker has formulated new technical thresholds to develop the modified H20 chip designs, as reported by Reuters. The changes will lead to a lot of downgrades from the original H20, such as very reduced memory capacity, according to the report.

However, according to Reuters sources, "downstream customers could potentially modify the module configuration to adjust the chip's performance levels," as per the report.

Nvidia’s Dependence on the Chinese Market

In the fiscal year ended January 26, Nvidia reported that China accounted for 13% of the firm's total sales, which was $17 billion in revenue, according to Reuters. The US-based company has generated $18 billion worth of H20 orders since January, as per the report.

Meanwhile, Nvidia CEO Jensen Huang went to meet Chinese officials in Beijing last month and highlighted the importance of China as a key market for the company, just days after US officials announced the new export license requirements for the H20 chip, as per the report.

FAQs

Why is Nvidia releasing a downgraded version of the H20 chip for China?
Nvidia is trying to comply with recent US export restrictions that prevent the sale of the original H20 chip to China without a license. By modifying the chip, they hope to keep serving one of their biggest markets while staying within legal boundaries.

When is the new chip expected to launch?
The modified H20 chip is planned to launch in July, and Nvidia has already informed key customers in China about the upcoming release.