Key points
- Low demand for Nvidia’s RTX 6000D AI chip in China, despite optimistic analyst projections.
- The chip is deemed expensive and underperforms compared to the readily available, albeit banned, RTX5090.
- Major Chinese tech firms are awaiting clarity on Nvidia’s H20 and B30A chip approvals.
- Beijing’s recent anti-monopoly accusations against Nvidia add further uncertainty.
Nvidia’s newly released RTX6000D AI chip, specifically designed for the Chinese market, is experiencing underwhelming demand. Industry sources reveal that several major Chinese technology companies have opted against placing orders, citing the chip’s high price point relative to its performance.
Internal testing reportedly indicates that the RTX6000D lags behind the performance of the RTX5090, a chip banned by the US but widely available through unofficial channels at significantly lower cost. This situation underscores the challenges Nvidia faces in navigating the complex landscape of US-China trade relations.
The lukewarm reception to the RTX6000D stands in stark contrast to projections from financial analysts, who had predicted substantial sales for the second half of the year. This discrepancy highlights the disconnect between market expectations and actual demand, suggesting that factors beyond mere performance and price are influencing purchasing decisions.
The uncertainty surrounding the regulatory approval of other Nvidia chips, notably the H20 and the anticipated B30A, further complicates the situation for Chinese tech companies as they weigh their options.
Adding to the uncertainty, Beijing recently accused Nvidia of violating China’s anti-monopoly law. This development casts a shadow over Nvidia’s operations in the world’s second-largest economy, coming at a time when US and Chinese delegations are engaged in trade discussions.
Meanwhile, Chinese authorities have questioned several technology firms about their planned purchases of the H20 chip, expressing concerns about potential information security risks. This ongoing scrutiny adds another layer of complexity to the challenges Nvidia faces in securing a foothold in the Chinese AI market.
The RTX6000D, designed to comply with US export restrictions, utilizes Nvidia’s latest Blackwell architecture but falls short of the performance expected by many Chinese companies. The chip’s development was partly aimed at filling the void left by the H20, which experienced a temporary sales ban before its eventual reinstatement.
However, even with the H20’s approval, shipments remain stalled due to various factors, including a deal with the US government. The future approval of the B30A, a much more powerful chip, remains uncertain, further clouding the outlook for Nvidia’s presence in China’s growing AI sector.
