Nvidia stated it is reviewing a "variety of products" following a Reuters report indicating the company is working on a new artificial intelligence chip for China that would be more advanced than its current offering, the H20.

According to Reuters, the chip, tentatively named the B30A, is expected to use Nvidia’s Blackwell chip architecture.

The company reportedly plans to send sample units to Chinese customers for testing as early as next month.

Nvidia told CNBC in a statement, “We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow. Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use.”

On Tuesday, Nvidia shares dropped more than 3%, in line with a broader market decline.

B30A Expected to Surpass H20 Chip in Performance

Reuters cited unnamed sources familiar with Nvidia’s plans who said the new B30A chip is designed to exceed the performance of the H20, which Nvidia had previously developed specifically for the Chinese market.

The H20 was a response to the U.S. government’s AI chip export restrictions implemented in 2023.

U.S. Agreement Requires 15% Revenue Share on China Sales

Earlier this month, Nvidia and Advanced Micro Devices reached an agreement with the U.S. government allowing them to resume chip sales in China.

In return, both companies agreed to give the U.S. a 15% cut of their revenue from Chinese sales.

President Donald Trump stated last week that he initially requested a 20% cut, but Nvidia CEO Jensen Huang negotiated the rate down to 15%.

Commerce Secretary Howard Lutnick commented on Huang's role, saying, “I’m sure he’s pitching the president all the time. I’ve listened to him pitch the president, and the president listens to our great technology companies, and he’ll decide how he wants to play it.”

Trump Open to Scaled-Down Blackwell Chip for Chinese Market

Trump also suggested he might permit Nvidia to sell a limited version of its Blackwell chip to China.

“It’s possible I’d make a deal” on a “somewhat enhanced, in a negative way, Blackwell” processor, he said. “In other words, take 30% to 50% off of it.”

China-Specific Chips Follow Earlier Trade Restrictions

The Trump administration stopped exports of advanced computer chips to China in April, citing national security concerns.

Nvidia had already designed the H20 to comply with earlier export controls under the Biden administration. AMD created the MI308 chip to serve the same restricted market.

PHOTO: NVIDIA

This article was created with AI assistance.