Nvidia (NASDAQ:NVDA) is preparing to launch a new, more affordable artificial intelligence (AI) chip tailored for China, according to a Monday report from Reuters. This new offering is set to cost considerably less than the company’s existing H20 model, which has recently faced usage restrictions.

Citing insiders with knowledge of the matter, the report states that Nvidia is targeting a production start as early as June. The upcoming graphics processing unit (GPU) will belong to the company’s latest lineup of Blackwell-architecture AI processors.

The new chip is expected to be priced between $6,500 and $8,000, making it significantly cheaper than the H20 model, which typically sells for $10,000 to $12,000. This price cut is largely due to scaled-down technical specifications and a more streamlined manufacturing process.

The chip will reportedly be based on Nvidia’s RTX Pro 6000D, a server-grade GPU. Instead of using high-bandwidth memory (HBM), the new unit will rely on standard GDDR7 memory, which contributes to its reduced cost.

By adjusting performance features and production complexity, Nvidia aims to maintain a foothold in China’s AI market while navigating evolving regulatory and trade conditions.

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