Nvidia and AMD Develop Cheaper AI Chips for China Amid U.S. Export Restrictions

Nvidia and Advanced Micro Devices are pivoting to lower-cost AI chip alternatives for the Chinese market following tightened U.S. export controls. Nvidia will substitute its restricted H20 GPU with the Blackwell-based B20 model, while AMD prepares its AI PRO R9700 for Chinese buyers.

The B20 carries a projected $6,500-$8,000 price point—a significant discount to the $10,000-$12,000 H20. Both companies anticipate Q3 2025 launches for these compliant chips. Nvidia forecasts the licensing requirements will erase $8 billion from Q2 revenue, compounding a $4.5 billion Q1 shortfall from suspended H20 shipments.

U.S. regulators blocked the H20 over concerns about China potentially using the advanced chips for supercomputing applications that could challenge American AI dominance. Nvidia CEO Jensen Huang has reportedly urged the Commerce Department to reconsider the restrictions.