Limited supply of Nvidia H20 AI GPUs due to export restrictions, prompting the creation of a new B30 model exclusive to China by Nvidia.
**Nvidia Shifts Focus to Blackwell Architecture, Leaving H20 HGX Behind**
In a significant move, Nvidia has decided not to resume production of its H20 HGX GPU, as the tech giant shifts its focus towards its latest Blackwell architecture. This decision comes despite a potential U.S. policy shift that could allow the resumption of H20 GPU exports to China.
**Policy Context and Export Updates**
The U.S. government's recent shift towards easing restrictions on Nvidia’s H20 GPU exports to China could boost demand among Chinese AI firms and cloud service providers. According to TrendForce, if fully implemented, the H20 could once again become the primary high-end AI chip in the Chinese market.
**Why Nvidia Has Not Resumed H20 HGX Production**
Despite the policy change, Nvidia has not announced the resumption of H20 HGX GPU production. The company's focus is clearly on its newer products, such as the Blackwell GPUs, which offer significant performance improvements over the H20.
Nvidia's production lines and partnerships are likely optimized for Blackwell-based products, making it less attractive to restart older H20 lines, especially when demand for the latest chips is strong globally. Additionally, the company may be cautious about committing resources to a product that could face renewed restrictions due to ongoing political and regulatory concerns.
**Planned Replacement: Blackwell and Beyond**
Nvidia's Blackwell architecture is the designated successor to the H20 and earlier Hopper-based products. Blackwell GPUs, such as the GB200 and HGX B200, are already in mass production and are expected to dominate Nvidia’s high-end shipments in 2025. These chips deliver substantial generational leaps in AI performance, further cementing Nvidia’s lead in the AI accelerator market.
Nvidia has signaled an “annual rhythm” of architecture releases, ensuring that customers have access to the most advanced hardware while maintaining its technological edge.
**Summary Table: H20 HGX vs. Blackwell Successors**
| Feature | H20 HGX (Hopper) | Blackwell GB200/HGX B200/B300 | |-----------------------|-----------------------------------|-------------------------------------| | Architecture | Hopper | Blackwell | | Production Status | Legacy, not resuming | Mass production, ramp-up in 2025[2][3] | | Performance | Cut-down for export compliance | Up to 40× Hopper in some workloads[3] | | Market Focus | China (export-restricted) | Global, incl. China (if allowed) | | Competitive Position | Outperforms most Chinese chips | Industry-leading, next-gen AI[2][3] |
**Future Developments**
Nvidia is preparing to release a B30 GPU relying on the company's latest Blackwell architecture. The price of the B30 GPU is said to be about 30% to 40% lower than the H20 GPU, which could help Nvidia reduce costs of China-bound AI GPUs and maintain or increase its gross margins.
However, further details about Nvidia's next-generation AI GPU for China should be taken with a grain of salt until more information is available. It remains unclear whether the successor to the H20 GPU will be based on the original Blackwell or the Blackwell Ultra architecture.
It is also worth noting that TSMC's fabs are operating at full utilization and have reassigned the H20 capacity to other customers. Nvidia plans to fulfill existing orders for H20 GPUs using current inventory, but there are no plans to resume production.
In conclusion, Nvidia's strategic and technical priorities lie with its latest architectures, ensuring it remains at the forefront of the global AI hardware market. The company's focus on the Blackwell architecture is a clear indication of its commitment to delivering cutting-edge technology to its customers.
The strategic direction of Nvidia, as stated in a significant move, leans towards its latest Blackwell architecture, disregarding the resumption of production for H20 HGX GPUs. This shift is due to the high demand for Blackwell-based products in the global business and technology sectors.
The ever-evolving landscape of technology and finance fuels the demand for Nvidia's cutting-edge Blackwell GPUs, making them a more attractive investment for both global companies and AI firms compared to the H20 HGX, which has been phased out.
