Overview

• Nvidia plans to launch a downgraded version of its H20 AI chip for the Chinese market by July, according to sources familiar with the matter.
• The U.S. Commerce Department informed Nvidia last month that the original H20 chip would require an export license, effectively blocking its sale in China.
• The modified H20 chip will feature significant reductions in memory capacity and performance to align with U.S. export control thresholds.
• China remains a critical market for Nvidia, contributing $17 billion in revenue last fiscal year and accounting for $18 billion in accumulated H20 orders.
• Nvidia CEO Jensen Huang visited Beijing last month, emphasizing China's importance to the company's global strategy amid tightening U.S. export restrictions.