Nvidia to launch cheaper AI chip for China, Reuters reports

The tech giant plans to launch a new AI chipset for China and start mass production by June, Reuters reported citing sources

The AI GPU will be based on Nvidia’s latest generation Blackwell-architecture AI processors and will cost $6,500-$8,000, stated the report

Sources stated that the new China-facing AI chips would not use Taiwan Semiconductor Manufacturing Company’s advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging tech, Reuters said

At COMPUTEX 2025 in Taiwan, Nvidia CEO Jensen Huang recently unveiled what may be the most powerful AI processor architecture to date, the Grace Blackwell NVL72 chip

Nvidia also announced the extension of NVLink Fusion, Nvidia’s high-speed interconnect technology, to partner with outside companies.

Nvidia CEO Huang also introduced Blackwell Ultra, a future iteration of the chip coming in 2026, followed by Rubin and Feynman architectures by 2028.

Before COMPUTEX, Nvidia CEO Jensen Huang also met TSMC CEO C.C. Wei for dinner. This could mean bigger plans on the horizon for the TSMC-Nvidia coalition