(CTN News) – NVIDIA is currently developing a version of its new premier artificial intelligence processors for the Chinese market that is compatible with current export constraints in the United States.

According to four individuals who are knowledgeable about the subject matter. This version would be targeted at the Chinese market.

The “Blackwell” chip series, which is scheduled for mass production later in the year, was announced by the artificial intelligence chip company in March. The company employed a combination of two squares of silicon that are identical in size to its previous offering to produce the new CPUs.

The B200 is thirty times faster than its predecessor in certain duties, such as responding to chatbots. This enables the B200 to execute these duties at a faster pace.

Inspur and NVIDIA are reported to be collaborating.

One of its primary distributors in China, introduced and distributed the chip, which is presently known as the “B20.” This information is derived from two of the sources.

The “B20” is expected to commence shipments during the second quarter of 2025, as indicated by an additional source who was interviewed by Reuters.

The sources have elected not to disclose their identities as a result of the fact that Nvidia has not yet issued a public statement regarding the situation.

A spokesperson from Nvidia declined to provide a response to the account. Despite being requested to provide feedback, Inspur did not do so.

Nvidia’s stock price increased by 1.4% to $119.67 during the premarket trading session in the United States pursuant to the publication of the report by Reuters.

In 2023, the United States government increased its restrictions on the transfer of advanced semiconductors to China. This was implemented to prevent the Chinese military from acquiring technological advancements in supercomputing that could be advantageous to the military.

Nvidia has since completed the development of three processors that are specifically designed for the Chinese market. These processors are specifically designed for the Chinese market.

The United States has imposed restrictions on the implementation of export laws that are more difficult to comply with. Consequently, Chinese technology giant Huawei and startups such as Enflame, which are supported by Tencent, have been able to make some inroads in the domestic market for strong artificial intelligence processors.

The United States corporation’s endeavors to surmount those obstacles would be significantly enhanced by the introduction of a processor from Nvidia’s Blackwell series that is exclusively intended for the Chinese market.

China accounted for 17% of Nvidia’s revenue in the January fiscal year.

The penalties imposed by the United States were the cause of this circumstance. This represents a decline from the 26% observed two years ago.

According to a May article published by Reuters, the H20, Nvidia’s most powerful processor exclusively designed for the Chinese market, experienced a rocky start this year when deliveries commenced. The American company priced it lower than a competitor chip manufactured by Huawei. The H20 is the most powerful processor that Nvidia has ever developed, specifically for the Chinese market.

Nevertheless, two of the individuals interviewed reported that sales are currently expanding at a rapid tempo.

According to an estimate provided by the research group SemiAnalysis, Nvidia is confident that it will sell over one million of its H20 processors in China this year, resulting in a total value of over twelve billion dollars.

It is anticipated that the United States will continue to exert pressure on export constraints that are associated with semiconductors, which is why high expectations are present.

Various sources have reported that the United States of America is reportedly pursuing additional restrictions on the shipment of chipmaking equipment to China from the Netherlands and Japan.

The administration of Vice President Joe Biden is also in the process of developing preliminary plans to encompass the most advanced AI models, according to sources. The underlying software that powers artificial intelligence systems, including ChatGPT, is known as AI Models. The administration is in the process of developing these models.

A report published by Bloomberg News last week resulted in a substantial decline in chip equities worldwide. According to the report, the foreign direct product rule was under consideration by the administration of Vice President Joe Biden.

The United States would be able to prevent the sale of a product if it was manufactured using technology that was developed in the United States as allowed by this rule.

SOURCE: TETN