Nvidia Assesses New AI Chip for China Under Regulatory Watch

Published Date : 20/08/2025 

Nvidia is reportedly working on a new AI chip, the B30A, for the Chinese market, which is expected to outperform the current H20 model. The company is navigating complex regulatory environments and global market dynamics. 

Nvidia, a leading technology company in the realm of artificial intelligence (AI) and graphics processing units (GPUs), has announced that it is evaluating several products following reports of a new AI chip for China. The chip, tentatively named the B30A, is expected to be based on Nvidia's Blackwell chip architecture, which is more advanced than the currently available H20 chip, according to sources cited by Reuters.

The new product is anticipated to be delivered to Chinese clients for testing as early as next month. Nvidia stated, “We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow. Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use.”

Despite these developments, shares of Nvidia declined by over 3% on Tuesday, in line with the broader market. Commerce Secretary Howard Lutnick praised Nvidia CEO Jensen Huang, suggesting that Huang is actively engaging with the administration to navigate the regulatory landscape. “I’m sure he’s pitching the president all the time. I’ve listened to him pitch the president, and the president listens to our great technology companies, and he’ll decide how he wants to play it,” Lutnick said in an interview with CNBC’s 'Squawk on the Street.'

Earlier this month, Nvidia and its rival, Advanced Micro Devices (AMD), agreed to give the U.S. government a 15% cut of their sales in China in exchange for permission to resume selling chips in the region. The Trump administration had halted the sale of advanced computer chips to China in April over national security concerns. Nvidia developed its China-specific H20 chip after the Biden administration implemented export controls on AI chips in 2023, while AMD created the MI308 chip for the Chinese market.

President Donald Trump had initially requested a 20% cut of Nvidia's sales but negotiated the number down to 15% with Jensen Huang. Trump also suggested that he would be open to Nvidia selling a significantly scaled-down version of its advanced Blackwell chip in China. “It’s possible I’d make a deal on a 'somewhat enhanced — in a negative way — Blackwell' processor. In other words, take 30% to 50% off of it,” Trump stated.

Nvidia's efforts to comply with regulatory requirements while maintaining its competitive edge in the global market highlight the complex dynamics at play in the tech industry. The company's strategic moves are crucial for its future growth and market position, especially in a rapidly evolving technological landscape.

Nvidia, headquartered in Santa Clara, California, is a pioneer in the development of AI and GPU technologies. The company's products are widely used in various industries, including gaming, data centers, and automotive. Nvidia's commitment to innovation and adherence to regulatory standards continues to shape its approach to global markets, particularly in regions like China where the demand for advanced AI solutions is high. 

Frequently Asked Questions (FAQS): 

Q: What is the new AI chip that Nvidia is working on for China?

A: Nvidia is reportedly working on a new AI chip called the B30A, which is based on the Blackwell chip architecture and is expected to outperform the current H20 model.

Q: Why did Nvidia and AMD agree to give the U.S. government a 15% cut of their sales in China?

A: Nvidia and AMD agreed to give the U.S. government a 15% cut of their sales in China in exchange for permission to resume selling chips in the region, which had been halted due to national security concerns.

Q: What is the significance of the H20 chip for China?

A: The H20 chip was developed by Nvidia specifically for the Chinese market after the Biden administration implemented export controls on AI chips in 2023. It is designed to comply with regulatory requirements while still offering advanced capabilities.

Q: How did President Trump's administration impact Nvidia's sales in China?

A: The Trump administration halted the sale of advanced computer chips to China in April 2025 over national security concerns, which led Nvidia to develop the H20 chip and negotiate terms with the government to resume sales.

Q: What is Nvidia's stance on regulatory compliance and market competition?

A: Nvidia evaluates a variety of products for its roadmap to ensure it can compete to the extent that governments allow. The company emphasizes that all its offerings are with the full approval of the applicable authorities and are designed for beneficial commercial use. 

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