Nvidia’s latest AI chip, designed specifically for the Chinese market, is struggling to gain traction. According to sources, major tech firms are hesitant to place orders due to concerns over its high price and relatively limited performance compared to other options.
The RTX6000D, priced at around 50,000 yuan ($7,000), is seen as expensive for what it does, with some tech giants opting for cheaper alternatives like the grey market-bought RTX5090. Chinese tech giants such as Alibaba, Tencent, and ByteDance are also holding off on orders until they receive clarification on whether Nvidia’s H20 chip will be processed.
The situation is further complicated by the uncertainty surrounding Nvidia’s B30A chip, which could provide a more powerful alternative to the H20 if approved by US authorities. The three chips are downgraded versions of models sold outside China, designed to comply with export restrictions aimed at curbing Chinese tech progress and maintaining US dominance in AI development.
Contrary to optimistic projections from sell-side analysts, such as JPMorgan and Morgan Stanley, which forecast significant production numbers for the RTX6000D, the chip’s tepid demand suggests that Nvidia may struggle to meet these expectations.
Source: news.cgtn.com
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