Nvidia offered Washington for the Chinese market with 5 % of Blackle’s power

Nvidia is introducing its new B30 chip to Washington officials to export to China. The chip offers about 5 % of the Blackwell flagship processing power.

The purpose of the Nvidia B30 chip design is to provide a weaker version of advanced chips for the Chinese market to match US export restrictions. This is the continuation of Nvidia’s efforts to maintain its presence in the Chinese market; A market that has 5 % of the company’s revenue last year.

Nvidia has introduced a new version of its B30 artificial intelligence graphics processor to US officials and hopes to obtain its export license to China with reduced performance. The Nvidia chip is said to deliver up to 5 % of the full power of Blackwell (Blackwell); But political barriers, Beijing’s doubts about the H20 model and the growth of China’s domestic competitors can affect the future.

Washington banned the sale of H20 chips in mid -April, which resulted in a $ 1.5 billion loss for Nvidia; But the ban was canceled just three months later. However, there is a new condition for the cancellation: Nvidia is obliged to pay 5 % of the revenue from the sale of these chips to China to the US government.

After lifting the ban, Chinese customers quickly purchased the H20 chips. In addition, Nvidia reportedly ordered hundreds of thousands of H20 chips to TSMC to meet this sudden demand.

However, things got worse. The Chinese state media has described the Nvidia H20 chip “insecure” and “old” and banned Chinese officials from buying it. Beijing claimed that these chips have “detectors or in other words back doors”, a claim that Nvidia has rejected.

In addition, the US Minister of Commerce’s comment, Howard Lutnick, about China’s addiction to American chips, caused Chinese authorities to suffer. Reports suggest that Nvidia calls for its suppliers to reduce the production of H20 chips, while the company is considering its next step for the Chinese market.

In response to these restrictions, some White House officials see Beijing’s actions as supporting domestic competitors such as Huawei. However, reports suggest that many Chinese buyers still prefer Nvidia chips to internal options; Because domestic supply is limited and their backup software has not yet been developed enough.

Meanwhile, according to reports, basic Blackwell architecture models designed for the Chinese market are lacking high-profile memory (HBM) and Multi-GPU Interconnect to limit their processing and scalability.

Some Chinese companies have tested examples of new Nvidia chips designed for China, and reports show the “positive results” of these tests. However, if the B30 chip export confirmation is delayed or significantly reduced, domestic suppliers such as Huawei may gain more market share, and this may be at the expense of Nvidia.