Nvidia Desperately Creates 4th Neutered Chip for China After U.S. Blocks $12 Billion Payday…

Well, Nvidia is back in the lab cooking up yet another chip for China, because apparently three wasn’t enough. After watching the U.S. government slam the door on its H20 AI accelerator, the one product it was still legally allowed to sell to China, the AI OG is now scrambling, for the fourth time, to Frankenstein together a “China-friendly” version of its hardware that doesn’t trigger a national security aneurysm in Washington. 

(Source: Giphy) 

This time, it’s Blackwell’s turn. Nvidia’s next-gen AI architecture, still warm from the oven, is already being chopped, filtered, and diluted into a version that maybe, possibly, hopefully won’t piss off the Commerce Department. According to The Information, Nvidia has told China’s heavy-hitters like ByteDance, Alibaba, and Tencent that a new chip is on the way. Samples could land as early as June.

And yet, there’s been no comment from Nvidia. No response from the Chinese firms. No reply from the U.S. government. Just silence, which in this case is the loudest confirmation possible. Everyone watching this clusterf*k of compliance and export regulation already knows the deal: Nvidia is trying to stay in China without getting thrown in the political woodchipper. 

(Source: Reuters) 

Which again is why Obi-Huang-Kenobi and his leather jacket flew to Beijing in April, right after the H20 got axed. The goal was to initiate a make-nice, damage-control tour. Why is it so important? Because the H20 is a BFD. Like, Nvidia had already made $12 billion selling it in China this year alone, until the U.S. government decided it was too powerful for foreign hands.

So now it’s back to the drawing board: build a new chip, water it down, slap on a new name, and pray it doesn’t end up on the next sanctions list. The new one based on Blackwell, will likely be a trimmed-down version of the B100 or B200, but no one’s officially saying that, because saying anything out loud risks killing it before it ships. Keep in mind too, that this is the fourth workaround Nvidia has had to do. 

(Source: Giphy) 

First came the A800. Then the H800. Then the H20. Now this. Four different chips in under two years, each one built specifically to tiptoe around Washington’s ever-shifting restrictions. Understandably, the U.S. says its about keeping the edge in the AI arms race. China’s obviously building its own chips anyway, but in the middle is Nvidia trying to sell silicon to both sides of a digital Cold War without setting off landmines. Meanwhile, domestic competition in China is heating up. Huawei’s cranking out local alternatives like it’s a national sport, and every delay from Nvidia gives them more room to gain ground. 

Of course, Huang still has Nvidia in China for now, and he’s playing both sides the best way he knows how. But the road ahead still looks like a bureaucratic meat grinder, nonetheless. And the only thing more unstable than Big Tech is the political circus deciding whether they can be sold at all. Which means, only time will tell if these diluted Blackwell chips can be sold at all. And if they can’t… well, Nvidia’s going to just have to embrace the suck, a fourth time.

For now, keep your eyes on this story and place your bets accordingly, friends. Until next time…

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News does not hold positions in companies mentioned in the article.