Nvidia's China Expansion: Futurum CEO Calls 'Next-Level Nonsense' Amid AI Chip Push

Nvidia is advancing efforts to bring the B30, a "China Ready" Blackwell chip to market, despite concerns that China doesn't need or want Nvidia. Wedbush analyst Dan Ives agrees that Nvidia's role in China is critical, while Chinese AI startup DeepSeek has delayed the launch of its R2 model due to technical failures with Huawei's Ascend processors. Nvidia faces rising competition from local chip makers and has agreed to give back 15% of its Chinese chip revenues to the US government.

Nvidia is making strides to introduce the B30, a "China Ready" AI chip based on its advanced Blackwell architecture, despite concerns that China may not need or want Nvidia. The move comes amidst ongoing geopolitical tensions and regulatory uncertainty.

The B30 chip, tentatively named B30A, is expected to offer more computational power than the current H20 model, which is Nvidia’s only approved product for China. However, it will still be scaled back compared to Nvidia’s flagship B300, according to Reuters [1]. The B30A will feature a single-die design with about half the computing power of the B300, but it will retain high-bandwidth memory and NVLink technology.

Nvidia aims to ship samples to Chinese clients as early as next month, with all products subject to government approval and intended for commercial use. The company is navigating a complex landscape of U.S. export controls, which are still in flux. President Donald Trump has suggested allowing more advanced Nvidia chips in China, though regulatory approval remains uncertain [2].

The B30A is part of Nvidia's broader strategy to thread the needle between U.S. restrictions and China's relentless demand for AI firepower. China accounted for 13% of Nvidia's revenue last year, making it a significant market for the company [1].

Nvidia faces stiff competition from local chip makers like Huawei and Cambricon, as Beijing pushes companies to adopt domestic chips. However, Chinese AI startup DeepSeek has delayed the launch of its R2 model due to technical failures with Huawei's Ascend processors, highlighting the challenges faced by domestic chip makers [3].

Nvidia has agreed to give back 15% of its Chinese chip revenues to the U.S. government as part of a deal struck by President Trump. The company resumed H20 shipments in July after a ban earlier this year, only for Chinese regulators to warn firms about using the chip [1].

Nvidia's stock has risen 35.6% so far in 2025, reflecting investor confidence in the company's ability to navigate the complex geopolitical landscape and maintain its position in the AI chip market [1].

References:
[1] https://stocktwits.com/news-articles/markets/equity/nvidia-readying-new-blackwell-based-b30-a-chip-for-china-as-us-tensions-flare-report/chsgO5iRdg9
[2] https://www.tradingview.com/news/gurufocus:f6392d01e094b:0-nvidia-preps-blackwell-based-ai-chip-for-china-amid-export-pressure/
[3] https://www.scmp.com/tech/article/3322366/tech-war-chinese-eda-leader-empyrean-announces-breakthroughs-chip-design-software