Nvidia is set to release a modified H20 AI chip in China by July 2025, sources told Reuters, after U.S. export restrictions blocked the original H20 model. The U.S. chipmaker has already alerted major Chinese customers—including leading cloud computing providers—to expect a downgraded H20 variant within the next two months.
Downgraded H20 for China
- Launch Timeline: Modified H20 AI chip expected July 2025
- Performance Trade-Offs: New technical thresholds impose significantly reduced memory capacity and other downgrades to comply with U.S. Commerce Department rules
- Customer Flexibility: End users may adjust module configurations to tweak chip performance
The original H20 AI chip was Nvidia’s most powerful model approved for Chinese sales—until U.S. officials demanded an export license last month, effectively halting its import. In response, Nvidia has redesigned the H20 to meet looser performance limits while preserving a foothold in the crucial Chinese market.
“These specifications will result in significant downgrades from the original H20, including substantially reduced memory capacity,” one source said.
China: A Critical Market for Nvidia
- $17 Billion Revenue: China accounted for 13% of Nvidia’s fiscal 2024 sales
- CEO Beijing Visit: Jensen Huang toured Beijing days after new H20 export rules were announced, underscoring China’s strategic importance
Nvidia’s pivot follows restrictive U.S. measures targeting advanced semiconductor technology exports to China since 2022—citing worries over military applications of high-end AI chips.
Surging Demand & Order Backlog
Despite export hurdles, Chinese tech giants Tencent, Alibaba, and ByteDance have placed robust H20 orders to power cost-efficient AI services. According to Reuters, Nvidia has amassed $18 billion in H20 orders since January 2025, driven by startups like DeepSeek seeking affordable AI compute.
