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Nvidia develops new AI chip for China to meet US export rules

Reports say Nvidia is developing a new AI chip for China that meets US export rules and enables large computing clusters.

Nvidia, a leading name in the chipmaking world, is working on a new artificial intelligence (AI) chip designed specifically for the Chinese market. This move aims to keep the company within US export laws while staying competitive in China, the world’s second-largest economy.

The new chip, the B30, is expected to allow users to link multiple units together. This would help build powerful computing clusters that can perform complex tasks. The report, first shared by The Information, said Nvidia plans to produce over one million of these B30 chips this year.

A chip designed for China

During Nvidia’s recent quarterly earnings call, company founder and CEO Jensen Huang mentioned that a new AI chip for China was being considered. However, he shared no further details at the time. A research note by Jefferies released on the same day as the report suggests that the B30 will likely be launched in July. It is also expected to be based on Nvidia’s latest Blackwell platform, which debuted last year.

This new development comes as Nvidia faces strict US rules on the export of advanced AI chips to China. In April, US officials informed the company that its existing H20 chips—made for Chinese clients—would now need a licence for export. A few days later, the government confirmed the rule would remain in place for the foreseeable future.

Nvidia has said that it is unclear how many, if any, of those licences will be granted. The impact has already been severe. The company has projected a revenue loss of US$8 billion in the second quarter because of the ban on H20 chips. It also took a US$4.5 billion charge in the first quarter due to extra inventory and related costs.

To circumvent the export limits, Nvidia has been trying to create chips that are as close to the legal boundaries as possible while still being permitted for sale in China.

A key market under pressure

China made up 14% of Nvidia’s revenue in the past year. Jensen Huang has clarified that the country is still an important market for the company. He also warned that any further restrictions could boost the success of rivals like Huawei Technologies.

Last month, Huang referred to Huawei as “one of the most formidable technology companies in the world.” He acknowledged that Huawei is quickly catching up with Nvidia in AI chip technology.

Huawei has already launched its own AI chip platform, Ascend. The company is also promoting a new computing structure called Supernode 384. This system is being seen as a competitor to Nvidia’s NVL72 setup, which is commonly used in large data centres to handle large volumes of data without slowing down.

A growing rivalry with Huawei

Huawei’s rising competitiveness has drawn attention from US authorities. Last month, the US government introduced new guidelines. These stated that using Huawei’s Ascend chips “anywhere in the world” could break US export controls. This step highlights how seriously the US views Huawei’s growing presence in the AI chip space.

In a recent interview with tech publication Stratechery, Huang criticised the US export rules. He said the idea of cutting off China from AI development was “deeply uninformed.” He also noted that blocking US companies from selling in China would only encourage China to build its strong AI ecosystem—without American firms.

As Nvidia pushes ahead with its new B30 chip, the global tech race between US and Chinese firms shows no sign of slowing down. Whether Nvidia can maintain its place in China while following US rules remains to be seen, but the company is working hard to try.

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