Nvidia is developing a new AI chip called the B30, designed to comply with US export regulations. The company plans to produce over 1 million units this year, according to a report by The Information.

The B30 chip will allow users to connect multiple units to create high-performance computing clusters.

Nvidia aims to maintain its presence in China despite tightened US technology export restrictions.

CEO Jensen Huang acknowledged the upcoming AI chip during Nvidia’s recent earnings call but did not provide specific details.

A research note from Jefferies suggested the chip could debut in July and may be based on the Blackwell platform. Nvidia expects to incur US$5.5 billion in charges due to the new measures.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Navigating a tightening export control regime

Nvidia’s B30 chip represents a broader pattern of US semiconductor companies creating “China-compliant” versions of their technologies to preserve market access amid intensifying restrictions.

The export control strategy has evolved significantly since 2019, shifting from market-driven policies to stringent regulations specifically targeting China’s access to advanced AI capabilities 1.

These restrictions have created measurable financial impact on US tech companies, with firms experiencing revenue losses, declining profitability, and reduced employment according to Federal Reserve analysis 2.

The B30 chip follows Nvidia’s earlier attempt with the H20, which faced additional restrictions in April, resulting in the company taking a $5.5 billion charge, demonstrating the ongoing challenges between tech companies and regulators.

By creating chips that enable users to link multiple units together, Nvidia appears to be pursuing a technical workaround that could maintain performance while staying within regulatory boundaries.

2️⃣ The scale of China’s semiconductor market drives adaptation

Nvidia’s plan to produce over a million B30 chips this year highlights the enormous financial incentive for American tech companies to maintain access to the Chinese market despite geopolitical tensions.

US semiconductor firms are balancing compliance with export controls against their need to preserve revenue streams from China, which remains one of the world’s largest markets for advanced computing hardware 3.

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