August 22 report, according to The information, the AI chip giant NVIDIA has ordered the suspension of H20 production after its sales in China were blocked.

This April, the United States introduced new restrictions on the export of AI chips to China, so the H20 chips specially provided by NVIDIA for the Chinese market could no longer be sold in China. This also led NVIDIA to cancel all orders from Chinese customers and announced in its quarterly financial report ending in April that it had lost about $4.5 billion due to H20 inventory and related purchase commitments, as well as an additional $8 billion in potential revenue losses.

Subsequently, on July 14 this year, NVIDIA announced that the U.S. government had promised to grant it a license to resume selling H20 to China. Two days after NVIDIA CEO Huang Renxun met with U.S. President Trump at the White House on August 6, the H20 officially received the export license to China, but the condition was that NVIDIA must pay 15% of its sales revenue to the Trump administration.

However, at the time when NVIDIA's H20 resumed exports to China, NVIDIA faced new obstacles in the Chinese market. On July 31, 2025, the State Internet Information Office interviewed NVIDIA, requiring the company to explain and submit relevant proof materials regarding the security risks of backdoors in the H20 computing chips sold to China.

Although NVIDIA responded that there are no backdoors, kill switches or monitoring software in its chips, the Chinese authorities have not yet dispelled their concerns about the security issues of NVIDIA chips. A media outlet with official background, "Yuyantan Tian" (a authoritative new media comment brand under the China Central Television), also published an article stating, "From any perspective, the H20 is not a safe chip for China. In addition to being unsafe, the H20 is not advanced. ... In addition to not being advanced, the H20 is not environmentally friendly."

Under the influence of the Chinese authorities' concerns about the security of NVIDIA chips, state-owned enterprises or private companies with official cooperation will not recklessly purchase H20 chips before this issue is resolved, which has also led to the blockage of H20 chip sales in China.

Additionally, compared to the H20, there are already many local AI chip manufacturers in the Chinese market that can provide products comparable to or better than the H20, which has significantly reduced the competitiveness of the H20 in the Chinese market. Moreover, the U.S. government's requirement for NVIDIA to share 15% of the H20 sales in China in exchange for the export license will greatly weaken the profitability of the H20.

According to the latest report from The information, NVIDIA has asked some of its component suppliers to stop ongoing work related to the H20 GPU, implying that the company believes continuing production is futile.

It should be noted that in the previous fiscal year ending January 26, 2025, NVIDIA generated approximately $17 billion in revenue in the Chinese market, accounting for about 13% of its total sales. At that time, NVIDIA had predicted that the annual revenue opportunity in China would be $50 billion. Obviously, NVIDIA's revenue in the Chinese market this year may be far lower than the previous fiscal year, and its expected $50 billion revenue target for the Chinese market may not be achievable for several years.

However, NVIDIA does not seem to give up. Latest news indicates that NVIDIA is preparing a new generation of GPU based on the Blackwell architecture for the Chinese market, with the model apparently named B30A. NVIDIA hopes to provide samples for testing to Chinese customers as early as next month.

Therefore, the shutdown of the H20 seems to be preparing for the B30A.

Editor: Xinzhi Xun - Lang Ke Jian

Original: https://www.toutiao.com/article/7541213730948858387/

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