Artificial intelligence kingpin Nvidia Corp (NASDAQ:NVDA) announced the launch of a modified version of its advanced gaming chip, the GeForce RTX 4090 D, specifically designed to comply with U.S. export controls targeting China.
This new chip, which promises a significant leap in performance, efficiency, and AI-driven graphics, will be available to Chinese customers starting in January.
According to a Nvidia spokesperson, the GeForce RTX 4090 D development involved extensive engagement with the U.S. government to ensure full compliance with export controls, Reuters reports.
Also Read: Nvidia Faces Fierce Competition in China, Tencent and Huawei Lead the Charge
This launch marks Nvidia’s first China-focused chip release since the Biden Administration’s export rules in October, which blocked the sale of two AI chips modified for the Chinese market, the A800 and H800, and the high-end gaming chip RTX 4090.
Initially, Nvidia had planned to announce three new AI chips for the Chinese market in response to the October restrictions.
Still, delays led to the postponement of one chip’s launch to next year, with the other two yet to appear on Nvidia’s China website.
Nvidia, which dominates over 90% of China’s $7 billion AI chip market, faces potential competition from domestic firms like Huawei Technologies due to the U.S. export curbs. U.S. Commerce Secretary Raimondo stated that Nvidia could still sell AI chips in China, but not those with the highest processing power.
The RTX 4090 D, aimed at the Chinese market, is reported to be 5% slower in gaming and creating compared to the banned RTX 4090 and will be priced at 12,999 yuan ($1,842), slightly more expensive than the second most advanced chip in the series available to Chinese customers.
Nvidia stock has gained 246% year-to-date versus the broader technology index Invesco QQQ Trust, Series 1 (NASDAQ: QQQ) at 56%.
Price Action: NVDA shares traded higher by 0.33% at $496.86 premarket on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
