Nvidia modifies H20 chip for China to bypass US export restrictions.

Nvidia is preparing a new version of the H20 artificial intelligence chip for China

The company Nvidia plans to release a new version of its H20 artificial intelligence chip for China within the next two months, three sources familiar with the situation told Reuters.

The American chipmaker has informed key Chinese clients, including leading cloud computing providers, that it plans to release a modified H20 chip in July, two sources noted.

The new version of the H20 is Nvidia's latest attempt to maintain its presence in one of its most important markets, facing expanding Washington efforts to limit China's access to advanced semiconductor technologies.

The H20, which was Nvidia's most powerful artificial intelligence chip allowed for sale in China, was effectively blocked from the market after American officials informed the company last month that an export license was required for this product.

Another source reported that clients could potentially modify the module's configuration to adjust the chip's performance levels.

Nvidia declined to comment. The U.S. Department of Commerce did not immediately respond to a request for comment.

China accounted for $17 billion in revenue, or 13% of Nvidia's total sales, in the financial year ending January 26.

Growing demand for H20 chips

Nvidia CEO Jensen Huang visited Beijing last month, just days after U.S. officials announced new export license requirements for the H20 chip. During meetings with Chinese officials, Huang emphasized the significance of China as a key market for the company.

Chinese tech giants, including Tencent, Alibaba, and ByteDance, the parent company of TikTok, have increased their orders for H20 chips amid rising demand for cost-effective artificial intelligence models from companies like the startup DeepSeek.

According to Reuters, since January, Nvidia has accumulated H20 orders amounting to $18 billion.