Nvidia (NASDAQ:NVDA) is planning to introduce a new artificial intelligence (AI) chipset in China that will be significantly less expensive than its recently limited H20 model, Reuters reported on Monday.
The company aims to start mass production of the new chipset as soon as June, the report added, citing sources familiar with the matter.
The graphics processing unit (GPU) will be a part of Nvidia’s latest generation Blackwell-architecture AI processors.
The expected price range for this new chipset is between $6,500 and $8,000, substantially lower than the $10,000 to $12,000 price point of the H20 model, Reuters added.
The reduced price of the new chipset is attributed to its less powerful specifications and simpler manufacturing requirements.
According to the report, the new chipset will be based on Nvidia’s RTX Pro 6000D, a server-class graphics processor, and will use conventional GDDR7 memory instead of the more advanced high bandwidth memory.