Nvidia’s AI Chips Get a China Makeover After Tough US Export Rules

In a major move, Nvidia is planning to change the design of its artificial intelligence (AI) chips so they can still be sold to Chinese companies without breaking U.S. export rules. This update came from a report by The Information on Friday.

The chip company has already spoken to some of its big Chinese customers, including Alibaba, ByteDance (which owns TikTok), and Tencent. These talks happened when Nvidia CEO Jensen Huang was in Beijing during mid-April. His visit came just after the U.S. put new export limits on the company’s H20 AI chips, which were previously allowed to be sold in China.

Nvidia’s AI chip exports to China face new restrictions

Because of these new export rules, Nvidia said it could lose around $5.5 billion, since China is one of its biggest markets. To solve this, Nvidia is making a new version of the AI chip, which follows the U.S. rules but can still be used by Chinese tech firms.

The company said that a sample of the updated chip could be ready by June. It is also working on a China-specific version of its latest chip called Blackwell. This shows Nvidia’s effort to stay strong in the AI market, even with political pressure from both countries.

Nvidia’s AI chips still key in U.S.-China tech race

The sale of advanced AI chips to China is a hot topic because of the growing competition between the U.S. and China in AI technology. The U.S. wants to make sure China does not get access to the most powerful chips, which are used in high-level AI work.

Even though Nvidia declined to comment on the news, and companies like ByteDance, Alibaba, Tencent, and the U.S. Commerce Department didn’t give a statement either, this development shows how tech companies are adjusting to global politics.

This news was first published on May 3, 2025, at 8:16 AM. It highlights how companies like Nvidia are working hard to protect their business while also following government rules.