competitive despite ongoing export restrictions imposed by the US government.
The new chip, built on NVIDIA’s Blackwell architecture, is expected to be priced between £4,817 ($6,500) and £5,928 ($8,000). This is noticeably cheaper than its earlier H20 model, which was priced between £7,410 ($10,000) and £8,893 ($12,000).
According to a company spokesperson, NVIDIA has limited options at the moment. “Until we settle on a new product design and get approval from the US Government, we are essentially shut out of China’s massive £37 billion ($50 billion) data center market,” they said.
This move highlights a major trend: the global AI hardware market is becoming more fragmented. With different chip versions being developed for different regions, businesses are now having to rethink how they source their technology. Creating region-specific, lower-performance chips just to comply with export rules is becoming more common.
The demand for advanced AI chips is skyrocketing, especially in sectors like cloud computing, robotics, and automation. Yet, geopolitical tensions and export bans are forcing companies to adjust their supply chains to stay agile and resilient.
In this shifting landscape, tech companies must look beyond just performance and price. Sourcing flexibility and regulatory compliance are now key factors in hardware strategy.
The US-China tech rivalry is playing out across the global technology supply chain, especially in the AI chip space. After the US restricted NVIDIA’s chip exports, Huawei stepped up, capturing a larger share of China’s AI chip market. In just three years, NVIDIA’s market share in China has reportedly dropped from 90% to 50%.
What This Means for Businesses
For enterprise leaders, the message is clear:
- Diversify your hardware suppliers
- Stay updated on trade policies
- Adopt an agile supply chain approach
The AI race is heating up—and companies that adapt quickly will have the edge.
