In March, the renowned AI chip manufacturer announced the introduction of its “Blackwell” chip line, expected to commence mass production later in the year.
Nvidia plans to collaborate with Inspur
These newer chips incorporate double the silicon area compared to their predecessors, making the particular model in the series, labeled B200, thirty times faster in certain operations such as generating responses from chatbots.
Nvidia plans to collaborate with Inspur, a leading distribution partner in China, for the debut and distribution of a chip currently referred to as the “B20”, as mentioned by two informants.
“B20” is scheduled to begin in the second quarter of 2025
According to another informant, the shipment of the “B20” is scheduled to begin in the second quarter of 2025. The informants requested anonymity since Nvidia has not yet officially announced this information.
An Nvidia representative refrained from commenting, and Inspur has not replied to inquiries for feedback.
Nvidia’s stock value
Following the news story’s release, Nvidia’s stock value increased by 1.4%, reaching $119.67 in U.S. premarket trading.
In 2023, Washington enhanced its export controls on leading-edge semiconductors to China, aiming to obstruct advancements in supercomputing that could benefit China’s military capabilities.
Subsequently, Nvidia developed three chips specifically catered to the Chinese market. The imposition of stricter U.S. export controls has supported the entry of Chinese tech titan Huawei (HWT.UL) and emerging companies like the Tencent-backed Enflame into the high-end AI processor market within China.
Blackwell series chip strengthen Nvidia’s strategy
A Blackwell series chip modified for the Chinese market could strengthen Nvidia’s strategy to overcome these emerging challenges.
In the year ending January, Nvidia reported that China contributed to approximately 17% of its revenue, a decrease from 26% two years prior, following the U.S. sanctions.
Nvidia’s flagship chip for the Chinese market, the H20, faced a sluggish start upon its initial release this year, with Nvidia setting its price lower than a competing chip from Huawei.