New information has emerged that NVIDIA is considering developing specialized artificial intelligence chips for the Chinese market in partnership with local technology company DeepSeek. This is reported by WccfTech, citing CTEE.
The decision comes amid new U.S. export restrictions that bar NVIDIA from selling its high-performance H20 chips to China. Losing access to this market is a significant blow to the company, as China is one of its key sources of revenue.
NVIDIA reportedly plans to rely entirely on Chinese manufacturing infrastructure, including HBM memory supply, process nodes, and packaging capacity. This could help the company maintain its presence in the region, gain government support, and adapt to new market conditions.
It's not profitable for the company to rely solely on producing "US-compatible" chips right now, given that with each new AI chip its computing power will decrease. Therefore, NVIDIA needs a reliable solution now, and creating chips in China is a completely justified step.
In this regard, NVIDIA and DeepSeek may begin to jointly develop new AI chips, and the company's research center may be located in China. This will allow for deeper integration into the local ecosystem and create solutions that meet the needs of Chinese companies. At the same time, competition with Huawei forces NVIDIA to act quickly to maintain its position in the market.