According to multiple people familiar with procurement discussions, the firms remain eager to confirm their orders for Nvidia’s H20 model—a chip that the U.S. government cleared for sale in China in July after months of uncertainty. At the same time, they are closely tracking Nvidia’s plans for a more powerful processor, tentatively called the B30A, which is based on its new Blackwell architecture.
Two sources said the B30A, if approved by Washington, could cost roughly twice as much as the H20, which currently sells for $10,000 to $12,000 per unit. Still, they noted that Chinese companies view the expected pricing as attractive given the B30A’s promised performance boost—up to six times more powerful than the H20.
Both the H20 and the upcoming B30A are customized “downgraded” chips designed to comply with U.S. export controls, which bar Nvidia from selling its most advanced processors in China. The restrictions have made access to cutting-edge AI chips one of the sharpest flashpoints in the broader U.S.-China struggle for technological dominance.
Balancing Restrictions and Demand
While Washington has eased some of its earlier restrictions on Nvidia, Chinese regulators remain wary. Authorities have summoned companies including Tencent and ByteDance in recent months to question their reliance on the H20, citing potential information security risks. However, they have stopped short of banning the purchases altogether.
That tension has not dampened demand. Domestic alternatives from Huawei and Cambricon remain limited in supply and, according to engineers at several Chinese firms, still lag behind Nvidia’s chips in performance. “Competition has undeniably arrived,” Nvidia acknowledged in a recent statement, but declined further comment on its position in the Chinese market.
Nvidia’s High Stakes
China accounted for 13% of Nvidia’s revenue in its last financial year, making the country a critical but uncertain growth market. The company has warned investors of the risks: in late August, it issued a cautious sales forecast that excluded potential Chinese revenue, contributing to a 6% drop in its stock price.
During its latest earnings call, Nvidia executives said shipments of the H20 had not yet begun due to ongoing discussions over a deal that requires the company to give the U.S. government 15% of its H20 revenue. CEO Jensen Huang has nonetheless reassured Chinese clients that supply will be available, and sources say Nvidia is stockpiling between 600,000 and 700,000 H20 chips while also preparing to send B30A samples for testing as early as September.
Huang has publicly estimated that if Nvidia could fully compete in China, the market could be worth as much as $50 billion to the company. For now, however, the firm is caught in the middle of a geopolitical standoff that leaves Chinese buyers keen—but cautious—to secure its chips.