Nvidia is set to introduce a modified AI processor to China, adapting to U.S. export restrictions. The newly designed chip, based on the previous-generation Hopper architecture, omits high-bandwidth memory to lower sensitivities related to export controls.

Key Changes and Strategy

• Hopper Variant Details: The new chip will see reduced performance characteristics but will allow Nvidia to maintain a presence in the critical Chinese market.
• Future of Blackwell: Nvidia plans to release a Blackwell variant without high-bandwidth memory later in 2025, ensuring compliance with U.S. guidelines.
• Impact on AI Customers: Major players in China’s AI sector, like Bytedance and Alibaba, will transition to these compliant models.