Nvidia Navigates Export Curbs with Tweaked H20 AI Chip for China

U.S. tech giant Nvidia is set to release a modified version of its H20 artificial intelligence chip for the Chinese market within the next two months, according to three sources familiar with the matter, reports Reuters.
The move comes in response to U.S. export restrictions that barred the sale of the original H20 chip in China. To comply with the imposed limitations, Nvidia is reducing the technical specifications of the chip, including its memory capacity, to fall within allowable thresholds.
China currently accounts for approximately 13 percent of Nvidia’s total revenue. Reflecting the strategic importance of the Chinese market, Nvidia CEO Jensen Huang visited Beijing last month and met with government officials to underscore the company’s commitment to China.
Demand for the H20 chip has been largely driven by major Chinese tech firms including Tencent, Alibaba, and ByteDance.