Nvidia tweaks chip to evade US sanctions on China

Nvidia plans to release a downgraded version of its H20 artificial intelligence chip for China in the next two months, following US export restrictions on the original model, three sources familiar with the matter told Reuters.

- LIAM MO BRENDA GOH

The US chipmaker has notified major Chinese customers, including leading cloud computing providers, that it aims to release the modified H20 chip in July, two of the sources said.

The downgraded H20 represents Nvidia's latest attempt to maintain its presence in one of its most crucial markets in the face of Washington's expanding efforts to restrict China’s access to advanced semiconductor technology.

The H20, which had been Nvidia's most powerful AI chip cleared for Chinese sales, was effectively blocked from the market after US officials informed the company last month that the product would require an export licence.