Nvidia launches new gaming chip

Prominent U.S. chipmaker Nvidia has introduced a modified version of one of its cutting-edge gaming chips specifically developed to comply with the export controls imposed by the U.S. government on China.

The controls aim to curb the export of advanced technologies to China, which the U.S. government fears could be used by the Chinese military for strategic purposes.

The chip, which the company says offers a “quantum leap in performance, efficiency, and artificial intelligence-driven graphics,” will be available to Chinese customers starting in January 2024, a Nvidia spokesperson said.

“The GeForce RTX 4090D has been designed to fully comply with U.S. government export controls. While developing this product, we extensively engaged with the U.S. government,” the spokesperson said.

The introduction of the GeForce RTX 4090D marks Nvidia’s inaugural launch, specifically tailored for the Chinese market. This move follows the imposition of revised export regulations by the Biden Administration in October.

Notably, two modified artificial intelligence (AI) chips, the A800 and H800, initially designed to meet earlier export rules for the Chinese market, faced sales restrictions. Additionally, the high-end gaming chip, the RTX 4090, was also affected by the new regulations, leading to its suspension from sale.

Also Read: Nvidia to prioritise Japan in supply of AI processors

Chip industry newsletter SemiAnalysis said in early November that Nvidia, in response to the October export rules, could announce three new AI chips aimed at the Chinese market as soon as November 16.

However, late last month, Nvidia told customers in China that it was delaying the launch of one of these chips until the first quarter of next year. The remaining two have not yet appeared on Nvidia’s China website.

Nvidia has commanded more than 90% of China’s $7 billion AI chip market, and analysts have said the U.S. curbs are likely to create opportunities for domestic firms such as Huawei Technologies (HWT.UL) to make inroads.

U.S. Commerce Secretary Raimondo, in an interview on December 11, said that Nvidia can sell AI chips to China, just not those with the highest processing power.

Compared to the banned RTX 4090, the China-focused RTX 4090 D is “5% slower in gaming and creating,” according to the Nvidia spokesperson. The China-focused RTX 4090 D will cost 12,999 yuan ($1,842), 350 yuan ($50) more expensive than the second most advanced chip in the product series available to Chinese customers.