Nvidia reportedly plans to release a downgraded version of its H20 artificial intelligence chip for China in the next two months.

Three sources told Reuters that the move follows U.S. export restrictions on the original model.

And that the U.S. chipmaker has notified major Chinese customers, telling them that it aims to release the modified chip in July.

The downgraded H20 represents Nvidia's latest attempt to maintain its presence in one of its most crucial markets.

Despite Washington's expanding efforts to restrict China's access to advanced semiconductor technology.

The H20 had been Nvidia's most powerful AI chip cleared for Chinese sales.

But it was effectively blocked from the market last month.

U.S. officials informed the company that the product would require an export license.

One source said Nvidia has formulated new technical thresholds, which will guide the development of the modified designs.

Adding that the specifications will result in significant downgrades from the original H20.

Nvidia declined to comment.

And the U.S. Commerce Department did not immediately respond to a request for comment.

China accounted for $17 billion in revenue, or 13% of Nvidia's total sales, over the fiscal year ending in January.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved