Nvidia Debuts Cost-Optimized Blackwell AI Chips for Chinese Market

Nvidia Debuts Cost-Optimized Blackwell AI Chips for Chinese Market

Introduction
Nvidia has announced new Blackwell-architecture AI chips specifically designed for China to comply with tightened US export controls, marking a strategic pivot to maintain its $13B annual revenue from the region. The RTX Pro 6000D and an unnamed second chip will use GDDR7 memory instead of restricted HBM, with mass production starting June 2025 Reuters via Data Center Dynamics.

Why This Matters
With China representing 13% of Nvidia’s global revenue, the move counters Huawei’s Ascend 920 AI chip threat. Priced at $6,500-$8,000 (40% below previous H20 chips), these GPUs target cost-sensitive enterprises while avoiding TSMC’s CoWoS packaging to sidestep sanctions Evertiq.

Technical Tradeoffs
The Blackwell variants sacrifice 30% memory bandwidth compared to HBM-based models but retain CUDA core counts. Early benchmarks show 85% of H20’s AI training performance for large language models, prioritizing inference tasks over cutting-edge research capabilities.

Market Impact
Analysts predict these chips could capture 60% of China’s $7B AI accelerator market, though Huawei’s 6nm Ascend 920 (launching Q3 2025) threatens price competition. Nvidia’s decision to exclude CoWoS packaging may limit scalability for hyperscalers but protects against further US regulatory action.

Conclusion
As CEO Jensen Huang noted, 'AI factories need adaptable architectures.' While these chips buy time in China, their long-term viability depends on the escalating US-China tech cold war. Microsoft and Alibaba Cloud have already committed to pilot deployments.