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Nvidia Reportedly Developing Cheaper Blackwell AI Chip for China Amid U.S. Export Curbs

Beijing, China

May 28, 2025 0 Neutral I want small business or entrepreneurial updates

Santa Clara, California: Under U.S. export restrictions, Nvidia is reportedly creating a lower-spec Blackwell-based chip for the Chinese market, priced $6,500–$8,000. It omits advanced memory and packaging to comply with government rules. China accounted for 13% of Nvidia’s previous annual sales, so this move highlights the strong commercial imperative to maintain a foothold despite regulatory hurdles. Rival Huawei has been gaining ground in China with its Ascend AI chips, intensifying pressure on Nvidia to adapt product offerings.

What this means for you:

•	In the next 2–4 weeks, track possible price changes on AI GPU rentals; limited supply might raise costs by 5–10%.
•	Over the next quarter, consider planning hardware acquisitions before further export curbs intensify.
•	Within 6 months, weigh alternative vendors if you rely on high-end compute; delayed shipments or restricted chips might disrupt business.
•	For cost control, negotiate volume discounts or flexible leasing arrangements, especially if your usage is under 200 GPUs.

Key Entities

• Nvidia: U.S. semiconductor giant adapting to new export limits.
• U.S. Government: Imposes restrictions on advanced AI hardware to China.
• Huawei: Major Chinese competitor in AI chips.
• Jensen Huang: CEO of Nvidia, vocal about the company’s challenges in China.

Multi-Perspective Analysis

Left-Leaning View

(No major coverage).

Centrist View

Concentrates on Nvidia’s strategic response and market impact.

Right-Leaning View

(No major coverage).

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