Nvidia Corp (NASDAQ:NVDA, ETR:NVD) is preparing to launch a lower-spec version of its H20 artificial intelligence chip in China as early as July, according to a Reuters exclusive citing three sources.
The move follows fresh US export restrictions that effectively barred the original H20 from the Chinese market.
The revised chip, intended for major clients including Tencent and Alibaba, will feature significantly reduced memory and performance to comply with new US rules.
China remains a vital market for Nvidia, accounting for 13% of its annual revenue.
The H20 had previously been the most advanced AI chip the US permitted for Chinese sales. Chief executive Jensen Huang visited Beijing last month, underlining the market’s strategic importance to the company.