Nvidia Releases Advanced Gaming Chip for China Amid US Export Controls

US chipmaker Nvidia has introduced a modified version of its advanced gaming chip tailored to comply with US export controls focused on China.

The chip, dubbed GeForce RTX 4090 D, boasts enhanced performance, efficiency, and artificial intelligence-driven graphics and is set to hit the Chinese market in January, as confirmed by a Nvidia spokesperson, per Reuters. The spokesperson underlined the chip's adherence to US government export controls, emphasizing extensive collaboration during the product's development.

The release of the GeForce RTX 4090 D signifies Nvidia's inaugural venture into China-centric chips following the Biden Administration's October announcement of export regulations, resulting in the blocking of two AI chips, A800 and H800, along with the high-end gaming chip RTX 4090, all tailored for the Chinese market.

Nvidia Values China

Earlier speculations from chip industry newsletter SemiAnalysis in November hinted at Nvidia's potential unveiling of three new AI chips for the Chinese market around November 16. However, last month Nvidia communicated a delay in launching one of these chips to its Chinese customers, with the remaining two yet to be featured on Nvidia's China website.

China holds critical significance for Nvidia, contributing over 90% to the country's $7 billion AI chip market. Other substantial markets for Nvidia include the US and Taiwan, combining for approximately 13% of the company's overall revenue, according to Cointelegraph.

Slower Chip for the Chinese Market

US Commerce Secretary Raimondo clarified in a December 11 Reuters interview that Nvidia has the green light to sell AI chips to China, except for those with the highest processing power. In a performance comparison with its banned predecessor, the China-focused RTX 4090 D is reportedly "5% slower in gaming and creating," according to the Nvidia spokesperson.

The pricing for the China-focused RTX 4090 D is set at 12,999 yuan ($1,842), making it 350 yuan ($50) more expensive than the second most advanced chip in the product series available to Chinese consumers.

The Nvidia RTX 4090 found itself on the list of US-made chips subject to export restrictions, as per an October 17 Securities and Exchange Commission filing. Nvidia's website highlights the RTX 4090D chip's utilization of AI for enhanced performance, per CNBC.

Shares of Nvidia are expected to triple in value by 2023. The firm has seen success due to increased demand for AI, with OpenAI's ChatGPT chatbot playing a significant role that has garnered significant attention.

China has had to explore ways to develop its AI chip industry due to US government regulations. Cointelegraph revealed on in September that China aims to develop AI chip factories to make particle accelerators and lead the semiconductor business.