Nvidia is once again redesigning its artificial intelligence (AI) chips specifically for the Chinese market after recent U.S. export bans targeted its previous China-tailored models. The company has informed major Chinese clients, including Alibaba, ByteDance, and Tencent, that it is modifying its chip architecture to comply with the latest U.S. export regulations. This move follows new restrictions imposed by the U.S. government in April 2025, which banned the export of Nvidia’s H20 chips-products that had already been developed as workarounds to earlier curbs.

Nvidia CEO Jensen Huang personally communicated these plans during his mid-April visit to Beijing, shortly after the new export rules came into effect. The H20, which was previously cleared for sale in China, was targeted because it still offered computing power deemed too advanced by U.S. authorities. The company has warned that these export curbs could result in a $5.5 billion revenue loss, underlining the significance of the Chinese market for Nvidia’s business.

To maintain its presence in China, Nvidia is now working on a new chip design, with a prototype expected to be available as soon as June. In addition, the company is developing a China-specific version of its latest-generation AI chip, Blackwell. These efforts are aimed at delivering products that come as close as possible to U.S. regulatory limits without violating them, allowing Nvidia to continue serving Chinese customers while adhering to the law.

The ongoing restrictions reflect a broader U.S. strategy to limit China’s access to the most advanced AI technologies, seeking to preserve a competitive edge in the global AI race. In response, Nvidia has consistently adapted its product offerings, illustrating both the importance of the Chinese market and the complex challenges posed by evolving international tech regulations.