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Nvidia Reportedly Plans to Launch Downgraded H20 Chip in 2 Mths in Response to CN Mkt Demand
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US AI chip giant Nvidia (NVDA.US) planned to launch a downgraded version of its H20 AI chip for China in the next 2 months in response to US export restrictions on the original model. Nvidia has informed its major Chinese customers, including leading cloud computing providers, that it plans to release the adjusted H20 chip in July.

H20 is considered to be Nvidia's most powerful AI chip, but it was restricted from export by the US last month. While Nvidia has set new technical thresholds that will guide the development of the adjusted version of the chip, sources said that downgrades to the original H20 include a significant reduction in memory capacity. Moreover, downstream customers may also modify the module configuration to adjust the chip's performance level.

Related NewsRatings/ TPs on TENCENT (00700.HK) (Table)
For the fiscal year ended 26 January, China accounted for US$17 billion in Nvidia's revenue, or 13% of total sales. During a visit to Beijing last month, CEO Jensen Huang emphasized that China is a key market for the Company.

An earlier data shows that Chinese tech giants such as TENCENT (00700.HK), BABA-W (09988.HK) and ByteDance increased their orders for H20 chips amid growing demand for cost-effective AI models, especially DeepSeek. Nvidia had accumulated US$18 billion worth of H20 orders since January.
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