Nvidia’s China Gambit: Slimmed-Down AI Chip Dodges US Export Curbs

Silicon sleight of hand—Nvidia’s latest move proves even tech cold wars have loopholes.

When the US slams the door, tech giants crawl through the windows. The GPU titan’s rumored ’diet’ version of its flagship AI processor reeks of that delicious corporate hypocrisy—cutting just enough performance to slip under sanctions while keeping Chinese data centers hungry for more.

Wall Street analysts are already salivating over the potential revenue bump—because nothing fuels innovation like geopolitical arbitrage.

In Brief

• Nvidia is developing a less powerful AI chip priced at $6,500 to circumvent U.S. restrictions.
• The company attempts to preserve its share of the Chinese market amidst Huawei’s rise.

A Discounted AI to Not Lose China

In January 2025, a rumor circulated that the TRUMP administration was considering banning Nvidia from selling its AI chips in China. In response to American restrictions on its products, Nvidia is preparing to launch.

The announced price, between $6,500 and $8,000, is a stark contrast with that of the H20. The latter was selling between $10,000 and $12,000 before its ban. The technology has also been deliberately simplified to meet the bandwidth thresholds required by Washington, which stand at 1.7 terabytes per second.

The goal is clear: to avoid, which still represents 13% of the group’s revenue. A Nvidia spokesperson even admitted that without U.S. government approval, the company risks being excluded from Chinese data centers.

The situation is critical. Proof: Nvidia’s market share in China has dropped from 95% to 50% since the first restrictions.

This AI chip WOULD be Nvidia’s third attempt to comply with U.S. requirements. Through this approach, the company hopes to regain ground against Huawei, whose Ascend 910D is in the launch phase.

Between Political Pressure and Imminent Results

This strategic choice comes just days before Nvidia’s quarterly results are published. Specifically, they are expected on May 28.

Despite the loss of H20 sales, some analysts predict:

• revenue of 43.4 billion dollars;
• adjusted net income of 21.3 billion (up 66%).

Nvidia is therefore playing on two fronts: preserving its performance while protecting its place in a global AI market fragmented by geopolitical tensions.

With this more accessible chip, Nvidia thus tries to balance political pressure and ambitions in global AI. The future might also involve other regions, less sensitive than the United States and China.

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