Nvidia (NVDA) is currently eyeing an array of products for its lineup, most notably a new AI chip known as the B30A for the Chinese market, as reported by Reuters. This advanced chip, an upgradation of the previously approved H20 chip, has been designed based on Nvidia’s Blackwell architecture. The company had resumed selling the H20 chip in China following an agreement with President Trump that entailed paying the US government 15% of its China chip sales revenue.
The new chip may be available for testing by Chinese clients as early as next month. An Nvidia spokesperson reaffirmed the company's commitment to comply with governmental rules, stating they aim to "be prepared to compete to the extent that governments allow" and that all their offerings are designed for "beneficial commercial use" with full authority approval.
However, despite the recent rally of Nvidia's shares due to optimism about sales in China and high demand for AI hardware, Nvidia’s shares took a hit of close to 4% due to wider tech-sector losses.
Market analysts have displayed mixed reactions towards the revenue-sharing agreements of Nvidia and Advanced Micro Devices (AMD) with the US government. While some see it as a positive development, others voice concerns about the implications for US tech firms navigating the volatile China trade policies. Observations suggest the scenario could potentially open the door for similar deals and lead to uncertainties over the amount tech companies might be expected to pay to sell such products in China.
President Trump indicated the possibility of expanding Nvidia's licenses to cover more powerful chips after further talks. Nvidia CEO Jensen Huang may provide more insights into the company’s strategies during the upcoming quarterly financial results announcement scheduled for August 27.