Nvidia is preparing to ship a new AI chip specifically engineered for the Chinese market by the end of this year, according to a report from The Information. The chip, based on language processing unit technology licensed from Groq, represents Nvidia’s latest attempt to thread the needle between US export restrictions and the massive demand for AI hardware in China.
Chinese companies have already placed orders for the chip, though one significant hurdle remains: Chinese regulators haven’t approved it for import yet.
What Nvidia is actually building
The new chip isn’t another GPU. It’s an LPU variant, a type of processor optimized for AI inference workloads rather than training. Nvidia designed this LPU to work alongside its existing GPUs, not replace them. The chip targets use cases like chatbot interactions and other deployed AI services.
Nvidia has already shipped compliant chips to China before. The H20, a deliberately hobbled version of its more powerful H-series processors, was designed to meet US export control thresholds while still being useful enough for Chinese buyers to want it. This new LPU follows the same playbook: build something that satisfies Washington’s restrictions while delivering enough performance to justify a purchase order from Beijing.
