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In a startling move aimed at making artificial intelligence (AI) chips affordable in China, Nvidia has announced to launch a new AI chipset at a much lower price than its H20 model, which was recently restricted by the US.
The new AI chip is linked to Nvidia's latest Blackwell-architecture AI processors and will enter the mass production phase next month, Reuters reported, citing sources.
It was also learned that the new graphics processing unit (GPU) will be priced between $6,500 and $8,000. This price point is significantly lower than that of the H20, which costs $10,000 to $12,000. The low pricing reflects its simpler specifications and manufacturing process.
This new Nvidia chip will be based on Nvidia's RTX Pro 6000D, a server-class graphics processor, and will use standard GDDR7 memory instead of the more advanced high bandwidth memory.
While Nvidia has not disclosed details about the new chip's pricing, specifications, or production schedule, a company spokesperson mentioned that the company is still evaluating its limited options and is awaiting approval from the US government to proceed. The US recently restricted access to China's $50 billion data centre market.
Nvidia generates 13% of its sales from China. This is the third time Nvidia has aligned its GPU manufacturing with China due to US sanctions limiting Chinese technological growth.