Nvidia launches new gaming chip for China to comply with US export controls -December 29, 2023 at 8:35 a.m.

2023-12-29 07:35:36

U.S. chipmaker Nvidia on Thursday launched a modified version of an advanced gaming chip designed to comply with U.S. export controls targeting China.

The chip, which the company says offers a “quantum leap in performance, efficiency and artificial intelligence-driven graphics”, will be available to Chinese customers starting in January, a spokesperson said from Nvidia to Archyde.com.

“The GeForce RTX 4090 D was designed to fully comply with US government export controls. During the development of this product, we engaged extensively with the US government,” the spokesperson said.

The GeForce RTX 4090 D is the first chip Nvidia has officially launched in China since export rules unveiled by the Biden administration in October had the effect of blocking the sale of two modified artificial intelligence (AI) chips that Nvidia had created for the Chinese market to comply with previous export rules, the A800 and H800, as well as that of a high-end gaming chip, the RTX 4090.

Chip industry newsletter SemiAnalysis said in early November that Nvidia, in response to October’s export rules, could announce three new artificial intelligence chips for the Chinese market as early as November 16.

However, Archyde.com reported late last month that Nvidia had told its Chinese customers that it was delaying the launch of one of these chips until the first quarter of next year. The other two do not yet appear on Nvidia’s China website.

Nvidia has more than 90% share of China’s $7 billion AI chip market, and analysts have said U.S. restrictions should allow domestic companies such as Huawei Technologies ( HWT.UL) to make breakthroughs.

In an interview with Archyde.com on December 11, US Commerce Secretary Raimondo said Nvidia could sell AI chips to China, but not those with the most processing power.

Compared to the banned RTX 4090, the China-bound RTX 4090 D is “5% slower in gaming and creation,” according to the Nvidia spokesperson.

The China-bound RTX 4090 D will cost 12,999 yuan ($1,842), which is 350 yuan ($50) more than the second-most advanced chip in the series available to Chinese customers.

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