Chipmaking titan NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) is working on a China-compatible version of its cutting-edge Blackwell artificial intelligence chip that will satisfy US technology sanctions.
According to a Reuters report citing “three sources familiar with the matter”, Nvidia is developing the chip with input from its China-based distribution partner Inspur.
The US has imposed stringent export controls on technologies heading to China in a bid to curb the country’s adoption of AI technology into its military.
This has been a source of frustration for Nvidia, which is a leading supplier of chips to the country.
Nvidia was forced by US authorities to stop supplying China with its then-flagship H100 and A100 chips in 2022.
The company released a simplified version of these chips for the Chinese market, only for them to come under tougher sanctions in late 2023.
Nvidia’s next generation of AI chips, the Blackwell family of processors, was announced in March 2024 to praise from tech industry leaders including Mark Zuckerberg and Elon Musk.
Given the bipartisan support for Chinese tech sanctions across the US political spectrum, it is unlikely that Nvidia – and the tech industry as a whole – will see a reprieve following the presidential elections in November.
It leaves the prospect that even a watered-down version of Nvidia’s Blackwell chips could come under tougher sanctions in the months and years ahead.