Nvidia Gears Up to Reclaim AI Chip Dominance Amid China Market Shift
Nvidia’s grip on China’s AI chip market has sharply declined from a commanding 95% share to just 50% over the last four years. This erosion is mainly due to Biden administration’s aggressive chip export restrictions, which opened the door for Chinese rival Huawei’s Ascend 910B chip to surge rapidly in China’s $50 billion AI chip sector.
May 28, 2025
Nvidia Gears Up to Reclaim AI Chip Dominance Amid China Market Shift
Nvidia’s grip on China’s AI chip market has sharply declined from a commanding 95% share to just 50% over the last four years. This erosion is mainly due to Biden administration’s aggressive chip export restrictions, which opened the door for Chinese rival Huawei’s Ascend 910B chip to surge rapidly in China’s $50 billion AI chip sector.
To fight back, Nvidia is reportedly launching a new Blackwell architecture AI chip designed to comply with U.S. regulations while regaining lost ground in the world’s second-largest economy. Series production is expected to start next month, with a second China-specific GPU slated for September.
This new chip will be priced between $6,500 and $8,000, significantly undercutting Nvidia's previous $10,000-$12,000 H20 chip. It will use more conventional GDDR7 memory to stay within Washington’s bandwidth caps, signaling Nvidia’s strategic push to balance performance with regulatory limits.
Jensen Huang, Nvidia’s CEO, has actively secured multi-billion-dollar AI chip deals in Saudi Arabia, leveraging geopolitical shifts as the U.S. and allies adjust technology export policies.
The stakes are high: Nvidia aims to reclaim dominance in China’s AI chip market while navigating the complex geopolitics of technology restrictions and international competition. This move reflects broader global tech decoupling trends — a key area for investors and market watchers focused on technology supply chains and geopolitical risk.