Nvidia to Launch Downgraded H20 AI Chip for China, Navigating US Export Controls

Nvidia readies cut-down HGX H20 GPU for China to comply with export control rules

Nvidia plans to introduce a cut-down version of its HGX H20 AI processor in China by July, aiming to retain access to the market after U.S. officials effectively barred the original version through updated export regulations, Reuters reports. According to preliminary information, the revised AI GPU will feature less onboard HBM memory to comply with newly imposed technical limits and replace the previously approved model. Among the changes of the new AI GPU is reduced memory capacity, which will affect the ability of the processor to train large language models with tens and hundreds of billions of parameters, one Reuters source noted. In addition, the final performance characteristics may be adjustable depending on how end customers configure the HGX GPU modules, potentially enabling minor flexibility despite the overall downgrade. In April, U.S. authorities restricted sales of AMD's Instinct MI308, Nvidia's HGX 20, and some other AI processors to China (including Hong Kong and Macau) due to unpublished export regulations. As a result, AMD and Nvidia had to write down inventory worth billions of dollars ($5.5 billion for Nvidia, $800 million for AMD) as export licenses for goods bound for China are reviewed with a presumption of denial. However, to sustain access to the critical market, Nvidia is now incorporating a set of downgrades to ensure it stays within the permissible thresholds set by the U.S. government. Nvidia has already communicated these plans to major customers in China's cloud computing sector. If the information about the downgraded HGX H20 processor is correct, it will be Nvidia's third Hopper-based GPU designed specifically for China that relies on cut-down H100 silicon. It is noteworthy that there is no word on Blackwell-based AI products for China. After the U.S. government imposed its first set of restrictions on AI and HPC GPUs exported to China in 2022, Nvidia built its H800 processor with reduced networking capabilities. The H800 only represented a minor performance downgrade compared to the original H100. After the U.S. administration imposed new export rules that restricted the performance of processors shipped to China, Nvidia developed its HGX H20 based on the H100 for AI training as well as L20 PCIe and L2 PCIe cards based on the AD104 GPUs for AI inference.

Exclusive: Nvidia modifies H20 chip for China to overcome US export controls, sources say

BEIJING, May 9 (Reuters) - Nvidia (NVDA.O), opens new tab plans to release a downgraded version of its H20 artificial intelligence chip for China in the next two months, following U.S. export restrictions on the original model, three sources familiar with the matter told Reuters. The U.S. chipmaker has notified major Chinese customers, including leading cloud computing providers, that it aims to release the modified H20 chip in July, two of the sources said. The downgraded H20 represents Nvidia's latest attempt to maintain its presence in one of its most crucial markets in the face of Washington's expanding efforts to restrict China's access to advanced semiconductor technology. The H20, which had been Nvidia's most powerful AI chip cleared for Chinese sales, was effectively blocked from the market after U.S. officials informed the company last month that the product would require an export license. Nvidia has formulated new technical thresholds, which will guide the development of the modified chip designs. These specifications will result in significant downgrades from the original H20, including substantially reduced memory capacity, one of the sources said. Another of the sources said downstream customers could potentially modify the module configuration to adjust the chip's performance levels. Nvidia declined to comment. The U.S. Commerce Department did not immediately respond to a request for comment. China accounted for $17 billion in revenue, or 13% of Nvidia's total sales, in the fiscal year ended January 26. Highlighting the country's strategic importance, Nvidia CEO Jensen Huang visited Beijing last month, just days after U.S. officials announced the new export license requirements for the H20 chip. During meetings with Chinese officials, Huang emphasised China's significance as a key market for the company. The U.S. has restricted exports of Nvidia's most sophisticated chips to China since 2022, citing concerns about their potential military applications. The H20 was introduced after Washington tightened export controls in October 2023. Chinese technology giants including Tencent (0700.HK), opens new tab, Alibaba (9988.HK), opens new tab and ByteDance, TikTok's parent company, stepped up H20 chip orders amid growing demand for cost-effective AI models from companies such as startup DeepSeek, Reuters reported early this year. Nvidia had accumulated $18 billion worth of H20 orders since January, according to a Reuters report last month. Reporting by Liam Mo and Brenda Goh; Editing by Sonali Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:China Brenda Goh Thomson Reuters Brenda Goh is Reuters' Shanghai bureau chief and oversees coverage of corporates in China. Brenda joined Reuters as a trainee in London in 2010 and has reported stories from over a dozen countries.

Nvidia modifies H20 chip for China to overcome US export controls, sources say

Nvidia CEO, Jensen Huang, speaks during an interview on CNBC's 'Power Lunch' on May 6, 2025. Nvidia plans to release a downgraded version of its H20 artificial intelligence chip for China in the next two months, following U.S. export restrictions on the original model, three sources familiar with the matter told Reuters. The U.S. chipmaker has notified major Chinese customers, including leading cloud computing providers, that it aims to release the modified H20 chip in July, two of the sources said. The downgraded H20 represents Nvidia's latest attempt to maintain its presence in one of its most crucial markets in the face of Washington's expanding efforts to restrict China's access to advanced semiconductor technology. The H20, which had been Nvidia's most powerful AI chip cleared for Chinese sales, was effectively blocked from the market after U.S. officials informed the company last month that the product would require an export license. Nvidia has formulated new technical thresholds, which will guide the development of the modified chip designs. These specifications will result in significant downgrades from the original H20, including substantially reduced memory capacity, one of the sources said. Another of the sources said downstream customers could potentially modify the module configuration to adjust the chip's performance levels. Nvidia declined to comment. The U.S. Commerce Department did not immediately respond to a request for comment. China accounted for $17 billion in revenue, or 13% of Nvidia's total sales, in the fiscal year ended January 26. Highlighting the country's strategic importance, Nvidia CEO Jensen Huang visited Beijing last month, just days after U.S. officials announced the new export license requirements for the H20 chip. During meetings with Chinese officials, Huang emphasised China's significance as a key market for the company. The U.S. has restricted exports of Nvidia's most sophisticated chips to China since 2022, citing concerns about their potential military applications. The H20 was introduced after Washington tightened export controls in October 2023. Chinese technology giants including Tencent, Alibaba, and ByteDance, TikTok's parent company, stepped up H20 chip orders amid growing demand for cost-effective AI models from companies such as startup DeepSeek, Reuters reported early this year.

NVIDIA rumored with even-more-cut-down H20 AI GPU for China, complies with US export rules

NVIDIA's new H20 AI GPU could feature significantly gimped performance with adjustments to memory and GPU, to comply with new US export restrictions. As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you. NVIDIA is reportedly preparing an even more downgraded H20 AI GPU for China in the next two months, following further tightening US export restrictions on the original H20. The news is coming from the usual "people familiar with the matter" reports Reuters, with NVIDIA notifying major Chinese retailers -- including large cloud computing providers -- with a new modified H20 AI GPU in July, according to "two of the sources". We have had recent rumors that NVIDIA was preparing a next-generation H30 AI GPU that would drop from using HBM to GDDR memory, but it seems NVIDIA is tweaking the GPU again. The original H20 chip was the most powerful AI chip that NVIDIA could legally sell in China, but the US government informed the company last month that H20 would now require an export license, effectively cutting NVIDIA off from the Chinese market. As a result, NVIDIA is now reportedly establishing a new technical baseline and modifying the chip's design, which, according to one source, means significantly lower performance compared to H20. In particular, memory capacity is expected to be "drastically reduced". China accounts for around $17 billion in revenue for NVIDIA, which works out to around 13% of its total sales for the fiscal year ending January 26, 2025. NVIDIA CEO Jensen Huang has visited Beijing recently, days after US officials announced the new export license requirements for its H20 AI GPU.

Jensen Huang's big decision: Reports say Nvidia will tweak H20 chip for China to overcome U.S. ban, will Donald Trump allow it?

Nvidia CEO Jensen Huang plans to launch a modified, downgraded version of its H20 AI chip in China by July to comply with recent US export controls. The company has already informed major Chinese cloud suppliers like Tencent and Alibaba about the release. Despite reduced memory capacity, customers may be able to adjust the chip's performance.Nvidia CEO Jensen Huang is set to make a daring move to ensure his company maintains a foothold in one of its most pivotal markets: China, as per a report. Nvidia intends to launch a downgraded version of its H20 artificial intelligence chip for China specifically, according to Reuters. This follows recent US export controls that stopped sales of the original version of the H20 model without a license, as reported by Reuters. The launch of the new chip will be in July, and Nvidia has already alerted its largest Chinese customers, such as the biggest cloud suppliers, including Tencent, Alibaba, and ByteDance, about the release, according to a report. The chipmaker has formulated new technical thresholds to develop the modified H20 chip designs, as reported by Reuters. The changes will lead to a lot of downgrades from the original H20, such as very reduced memory capacity, according to the report. However, according to Reuters sources, "downstream customers could potentially modify the module configuration to adjust the chip's performance levels," as per the report. In the fiscal year ended January 26, Nvidia reported that China accounted for 13% of the firm's total sales, which was $17 billion in revenue, according to Reuters. The US-based company has generated $18 billion worth of H20 orders since January, as per the report. Meanwhile, Nvidia CEO Jensen Huang went to meet Chinese officials in Beijing last month and highlighted the importance of China as a key market for the company, just days after US officials announced the new export license requirements for the H20 chip, as per the report. Why is Nvidia releasing a downgraded version of the H20 chip for China? Nvidia is trying to comply with recent US export restrictions that prevent the sale of the original H20 chip to China without a license. By modifying the chip, they hope to keep serving one of their biggest markets while staying within legal boundaries. When is the new chip expected to launch? The modified H20 chip is planned to launch in July, and Nvidia has already informed key customers in China about the upcoming release.

Nvidia Modifies H20 Chip For China After US Restrictions Block Sales, Aims To Deliver New Version By July: Report - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA is reportedly redesigning its H20 artificial intelligence chip for the Chinese market after U.S. export controls effectively blocked the original version, with plans to launch the modified chip as early as July. What Happened: Nvidia has notified major Chinese customers, including top cloud service providers, that it intends to release a downgraded H20 chip within the next two months, reported Reuters, citing sources familiar with the matter. The move comes after the U.S. government informed Nvidia last month that the original H20 would require an export license, effectively banning it from sale in China under tightened national security rules. Following this, Nvidia revealed that export restrictions might lead to a revenue loss of $5.5 billion. See Also: Elon Musk Says Will Come As A 'Surprise To Most' As China's Economy Surpasses US And EU Amid Rising Tariffs And Growing Recession Fears The company has since developed new technical thresholds to guide the modified design, which will include substantial reductions in memory capacity and potentially other performance adjustments, the report noted. Nvidia did not immediately respond to Benzinga's request for comments. Why It's Important: Chinese tech giants such as Tencent Holdings TCEHY, Alibaba Group BABA and ByteDance earlier this year ramped up H20 orders to fuel a growing demand for cost-effective AI solutions, especially from startups like DeepSeek. Since January, Nvidia has reportedly accumulated $18 billion worth of H20 orders. However, in March, Chinese server maker H3C warned of a possible shortage of Nvidia's H20 chips. Earlier this month, Nvidia CEO Jensen Huang informed U.S. lawmakers that AI chip export restrictions might be giving China's Huawei Technologies a competitive advantage. That same day, Nvidia also criticized AI startup Anthropic for supporting tighter U.S. export controls on AI chips to China. Price Action: Nvidia shares dipped by 0.27% to $117.05 in after-hours trading, according to Benzinga Pro. Benzinga Edge Stock Rankings gave Nvidia a strong growth score of 94.76%. Click here to see how it stacks up against other major tech players like Alibaba and Tencent. Photo Courtesy: Hepha1st0s On Shutterstock.com Read Next: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$126.602.73%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum94.14Growth73.54Quality57.58Value78.49Price TrendShortMediumLongOverviewNVDANVIDIA Corp$117.05-0.01%TCEHYTencent Holdings Ltd$64.393.04%Got Questions? AskWhich Chinese tech companies will benefit from H20?How will Nvidia's redesign impact sales?Which AI startups might thrive with H20 access?Could Alibaba leverage H20 for growth?How will Tencent Holdings adapt to chip changes?What advantages does Huawei gain from restrictions?Which investors should watch Nvidia closely?Will H3C face challenges from chip shortages?How might DeepSeek exploit H20 demand?What impact will export controls have on Nvidia's future?Powered ByMarket News and Data brought to you by Benzinga APIs

NVIDIA Rumored To Release a New H20 AI GPU Model With Further "Cut-Down" Specifications, Complying With New US Export Controls

NVIDIA plans to maintain its presence in the Chinese AI market by likely introducing a modified version of the H20 AI accelerator, with much lower performance levels. There's no doubt that NVIDIA is having a hard time maintaining its presence in the Chinese AI market, especially with the constant revisions in US export policies. This would likely mark the third time that Team Green had to introduce a new AI accelerator for China to comply with US restrictions, as, according to Reuters, it has been revealed that NVIDIA could "re-launch" the H20 AI GPU in the coming months, which will come with lower performance levels, since the specifications are expected to be modified significantly. While the specifications of the downgraded H20 AI accelerator are uncertain for now, it is reported that the GPU could feature substantially reduced memory capacity and changes with the module configuration to reach US-compliant performance levels. The chip could be introduced in Chinese markets as soon as July, as NVIDIA cannot compromise on its market position, especially at a time when competitors like Huawei are ramping up the development of their own solutions, like the Ascend 910C AI chip. Apart from a revised H20, it was recently claimed that NVIDIA plans to introduce a "Blackwell-based" solution for the Chinese AI markets, which shows that the company plans to do extensive business in the region. Back when the US banned the export of the H20 AI accelerator, NVIDIA's CEO Jensen Huang rushed towards China in order to express the firm's commitment towards the country's AI ambitions, which shows that catering to the Chinese markets is an integral part of NVIDIA's business, and Team Green won't halt its relations with the nation, even with the US opposition. It would be interesting to see whether Chinese tech giants show optimism towards NVIDIA's new H20 AI accelerator, considering that its performance would be much lower compared to what is offered at a global level. Apart from this, Huawei's solution is claimed to offer much more flexibility and security to Chinese firms as well, so Team Green needs to cater to the competition.

Nvidia to downgrade H20 AI chip for China to meet US export controls- Reuters By Investing.com

Investing.com--NVIDIA Corporation (NASDAQ:NVDA) is planning to release a downgraded version of its H20 artificial intelligence chip in China within the next two months, as it moves to meet stricter U.S. export restrictions, Reuters reported on Friday. Nvidia has informed several major Chinese customers, including cloud computing services providers, of the move, Reuters reported, citing three sources familiar with the matter. The H20 is the most powerful chip that Nvidia is allowed to sell in China, at least under Biden-era export controls. But the Trump administration recently signaled stricter controls on technology exports to China, with Nvidia now requiring a license to export the chip to China. Downgrading the chip- ie, lower its computing power and slashing its memory capacity, is expected to help Nvidia bypass the new controls. President Donald Trump has largely followed the Biden administration in further tightening China's access to advanced AI tech. The H20 chip is at the forefront of China's AI development efforts, and is used by a swathe of different companies- ranging from AI startup DeepSeek to internet giants such as Baidu (NASDAQ:BIDU) and Alibaba (NYSE:BABA). But a downgrade in the chip is expected to make it less competitive in Chinese markets, leaving Nvidia vulnerable to competition from home-grown developers such as Huawei. The latter already makes a competing AI chip for Chinese markets. China accounted for about $17 billion in revenue, or 13% of Nvidia's total sales in the fiscal year to January 2025. CEO Jensen Huang has emphasized on China's importance to Nvidia, having visited Beijing in April.

Exclusive-Nvidia modifies H20 chip for China to overcome US export controls, sources say

BEIJING (Reuters) -Nvidia plans to release a downgraded version of its H20 artificial intelligence chip for China in the next two months, following U.S. export restrictions on the original model, three sources familiar with the matter told Reuters. The U.S. chipmaker has notified major Chinese customers, including leading cloud computing providers, that it aims to release the modified H20 chip in July, two of the sources said. The downgraded H20 represents Nvidia's latest attempt to maintain its presence in one of its most crucial markets in the face of Washington's expanding efforts to restrict China's access to advanced semiconductor technology. The H20, which had been Nvidia's most powerful AI chip cleared for Chinese sales, was effectively blocked from the market after U.S. officials informed the company last month that the product would require an export license. Nvidia has formulated new technical thresholds, which will guide the development of the modified chip designs. These specifications will result in significant downgrades from the original H20, including substantially reduced memory capacity, one of the sources said. Another of the sources said downstream customers could potentially modify the module configuration to adjust the chip's performance levels. Nvidia declined to comment. The U.S. Commerce Department did not immediately respond to a request for comment. China accounted for $17 billion in revenue, or 13% of Nvidia's total sales, in the fiscal year ended January 26. Highlighting the country's strategic importance, Nvidia CEO Jensen Huang visited Beijing last month, just days after U.S. officials announced the new export license requirements for the H20 chip. During meetings with Chinese officials, Huang emphasised China's significance as a key market for the company. The U.S. has restricted exports of Nvidia's most sophisticated chips to China since 2022, citing concerns about their potential military applications. The H20 was introduced after Washington tightened export controls in October 2023. Chinese technology giants including Tencent, Alibaba and ByteDance, TikTok's parent company, stepped up H20 chip orders amid growing demand for cost-effective AI models from companies such as startup DeepSeek, Reuters reported early this year. Nvidia had accumulated $18 billion worth of H20 orders since January, according to a Reuters report last month. (Reporting by Liam Mo and Brenda Goh; Editing by Sonali Paul)