Nvidia Shifts Strategy: No More Hopper-Based Chips for China

 Nvidia CEO Jensen Huang recently confirmed that the company’s next AI chip for China will not be based on its powerful Hopper architecture, the same platform behind chips like the H100 and H20. The reason? Tightened U.S. export regulations that now make it impossible to legally modify Hopper chips for Chinese use.


This marks a major strategic pivot for Nvidia, which has relied heavily on China — a market that made up about 13% of its annual revenue. With the H20 chip already limited by previous regulations and now essentially blocked, Nvidia has no choice but to design an entirely new chip architecture that can comply with restrictions while still serving China's high demand for AI processing power.


Meanwhile, Chinese companies like Huawei are rapidly developing domestic AI chips, increasing pressure on Nvidia to act quickly and stay competitive.


The company is also exploring plans to open a local R&D center in Shanghai, aiming to create region-specific solutions and maintain relevance in China’s fast-changing tech landscape.


This move shows how geopolitics and innovation are deeply intertwined — and that the future of AI hardware might depend more on where it's going than how powerful it is.


Nvidia isn’t backing out of China — it’s building smarter for it.



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