Nvidia Unveils China-Focused Gaming Processor

On December 28, Nvidia, a globally recognized manufacturer of artificial intelligence (AI) chips, introduced a novel gaming processor explicitly designed for the Chinese market.

Nvidia’s new advanced gaming processor reportedly provides Chinese customers with a “significant improvement in performance, efficiency, and graphics powered by artificial intelligence” while remaining compliant with U.S. export regulations, as reported by Reuters.

This is the first China-centric chip from Nvidia since President Joe Biden imposed export controls on chips to China in October 2022. On numerous occasions since their initial implementation, the U.S. government has increased its powers.

Nvidia has prohibited the sale of its most powerful processors, the A800 and H800, and its cutting-edge gaming chip, the RTX 4090, on the Chinese market.

A representative for Nvidia stated that its new RTX 4090 D will cost 12,999 Chinese yuan ($1,842) and is “5% sluggish in gaming and creating.”

The company anticipates the release of its new semiconductor for China in January 2024.

China constitutes a significant market for Nvidia, contributing more than 90% of the country’s $7 billion AI processor market.

The United States and Taiwan are Nvidia’s most significant markets, after China, with approximately 13% of its revenue from all other countries combined.

The company has previously cautioned that excessively restrictive export restrictions to China could negatively impact long-term results.

Nvidia reported a record $18 billion in revenue for the third quarter of 2023, citing generative AI as the primary revenue driver despite this prohibition.

The massive restrictions imposed by the United States government on China have compelled the nation to devise alternatives to expand its market for AI chips.

It was reported on September 25 that China intends to construct AI chip facilities to produce particle accelerators and advance the nation’s position as a global leader in the semiconductor industry.