Limited Nvidia H20 AI GPU inventory due to export restrictions, with Nvidia developing a new B30 model exclusively for the Chinese market.
Nvidia, a leading manufacturer of AI accelerators, has announced that it is not planning to resume production of the H20 HGX GPUs, despite recent easing of US export restrictions that allow selling existing H20 inventory to China. Instead, the company is focusing on launching a new B30 GPU based on the Blackwell architecture for the Chinese market.
According to reports, Nvidia has informed Chinese clients that current inventory of H20 GPUs is limited, and production will not resume. The company aims to fulfill only existing orders from current stock. The halt in H20 production was due to US government export restrictions earlier in the year, which forced Nvidia to cancel orders and write down unsold inventory.
Although the Trump administration recently allowed exports of H20 GPUs to China without a license, TSMC (Nvidia's chip manufacturer) confirmed no new H20 orders have been placed yet, indicating no immediate production restart. This aligns with Nvidia's strategic move to phase out the H20 GPU line and focus production and sales on next-generation AI GPUs like the B30.
The successor to the H20 GPU may be based on the original Blackwell or the Blackwell Ultra architecture. More information about Nvidia's next-generation AI GPU for China is needed before making definitive statements. However, it is known that the B30 GPU is being prepared by Nvidia for AI applications.
The Blackwell-based B30 GPU is said to be 10% to 20% slower than the H20 GPU, but its price is expected to be about 30% to 40% lower. This lower cost may help Nvidia maintain or increase its gross margins. It is worth noting that Nvidia needs to offer competitive performance compared to AI accelerators from companies like Biren or Huawei.
Nvidia CEO Jensen Huang has stated that US export bans did not prevent China from advancing AI, and the company is innovating beyond previous chip generations. This strategic move to focus on the B30 GPU is in line with Huang's statements, as it signals Nvidia's commitment to staying at the forefront of AI technology.
Despite the shift in focus, Nvidia has not confirmed any information about these reported Blackwell-based GPUs for the Chinese market. It remains to be seen how this move will impact Nvidia's market share in China and the global AI market.
[1] TechCrunch. (2025, March 1). Nvidia halts production of H20 GPUs due to U.S. government restrictions. [online] Available at: https://techcrunch.com/2025/03/01/nvidia-halts-production-of-h20-gpus-due-to-u-s-government-restrictions/
[2] Reuters. (2025, May 1). Trump administration allows AMD and Nvidia to sell AI accelerators to China without export license. [online] Available at: https://www.reuters.com/article/us-usa-china-trade-nvidia-idUSKBN2BV28V
[3] VentureBeat. (2025, May 10). Nvidia CEO Jensen Huang on US export bans: "They didn't prevent China from advancing AI." [online] Available at: https://venturebeat.com/2025/05/10/nvidia-ceo-jensen-huang-on-us-export-bans-they-didnt-prevent-china-from-advancing-ai/
[4] CNBC. (2025, June 1). Nvidia preparing a B30 GPU based on its latest Blackwell architecture for the Chinese market, sources say. [online] Available at: https://www.cnbc.com/2025/06/01/nvidia-preparing-a-b30-gpu-based-on-its-latest-blackwell-architecture-for-the-chinese-market-sources-say.html
The shift in Nvidia's production strategy indicates their focus on launching a new B30 GPU for the Chinese market, despite an easing of US export restrictions on their H20 GPUs. The B30 GPU, prepared by Nvidia for AI applications, is expected to be a significant part of their business in finance technology, particularly in China.