Exclusive: Nvidia’s RTX6000D AI Chip Struggles to Gain Traction in China

Nvidia’s latest China-specific AI chip, the RTX6000D, is receiving a muted response from the country’s biggest technology firms, according to people familiar with procurement talks. Despite being tailored to comply with U.S. export restrictions, the chip is drawing criticism for high pricing and underwhelming performance. 

The RTX6000D, priced at around 50,000 yuan (roughly $7,000), is designed for AI inference workloads. However, early testers found it falls short when compared with Nvidia’s RTX5090—a model banned in China but widely available on the grey market at less than half the cost. For many firms, the cheaper RTX5090 remains the more attractive option. 

China’s major internet players—including Alibaba, Tencent, and ByteDance—are reportedly holding off on large-scale orders until there’s clarity on shipments of Nvidia’s H20 chip, which regained U.S. approval in July but has yet to restart deliveries. Companies are also closely watching the regulatory fate of Nvidia’s B30A, a far more powerful processor that, if approved by Washington, could reshape the competitive landscape.

Weak Demand vs. Strong Expectations 

The lukewarm reception for the RTX6000D contrasts sharply with bullish analyst forecasts. JPMorgan projected production of around 1.5 million units in the second half of this year (2024), while Morgan Stanley expected Nvidia to have as many as 2 million in its pipeline. Nvidia began initial shipments of the RTX6000D this week, sources said. 

An Nvidia spokesperson noted only that “the market is competitive—we offer the best products we can.” Alibaba, Tencent, and ByteDance declined to comment. 

Trade Tensions and Regulatory Risks

Access to advanced AI chips remains one of the most sensitive flashpoints in U.S.–China trade relations. While Washington has slightly eased restrictions this year, Beijing has pushed for greater adoption of homegrown processors, even as many Chinese companies still prefer Nvidia’s designs. 

Adding to the uncertainty, Chinese regulators this week accused Nvidia of breaching anti-monopoly rules, a move that could complicate the company’s operations in its second-largest market. At the same time, Beijing has been pressing tech firms to explain their purchases of restricted chips like the H20, citing potential national security concerns. 

Specs and the Road Ahead

 Built on Nvidia’s new Blackwell architecture, the RTX6000D features conventional GDDR memory and a bandwidth of 1,398 gigabytes per second—just under the 1.4 terabyte cap set by U.S. rules in April. It was designed as a stopgap after the H20 was temporarily banned earlier this year. By contrast, the H20, though based on older Hopper architecture, offers a far higher 4 terabytes per second in bandwidth and sells for $10,000 to $12,000. 

Nvidia’s future in China may hinge on whether regulators greenlight the B30A. Expected to deliver up to six times the performance of the H20 at roughly double the cost, the chip could prove decisive in maintaining Nvidia’s edge if Washington allows it into the market. 

Summary:

Nvidia’s RTX6000D chip has struggled to win over Chinese tech giants, who see it as overpriced and underpowered compared with alternatives. While analysts projected strong demand, companies are waiting for clarity on the H20 and B30A chips. Rising regulatory scrutiny in Beijing and U.S. export controls make China one of Nvidia’s most challenging markets—despite being critical to its long-term growth.

FAQs on Nvidia’s RTX6000D in China

1. What is the Nvidia RTX6000D chip?

The RTX6000D is a China-specific AI inference chip developed by Nvidia to comply with U.S. export restrictions. It is built on Nvidia’s Blackwell architecture and priced around 50,000 yuan ($7,000).

2. Why is the RTX6000D facing weak demand in China?

Chinese tech firms view the RTX6000D as overpriced and underpowered compared with alternatives like the grey-market RTX5090, which costs less than half as much but offers stronger performance.

3. How does the RTX6000D compare to the RTX5090 and H20 chips?

RTX6000D: Legal for sale in China, but limited performance and high cost.

RTX5090: Banned in China but available through unofficial channels, offering better value.

H20: Regained U.S. approval in July, has higher memory bandwidth, and is priced between $10,000–$12,000. Shipments have not yet resumed.

4. What role does the B30A chip play in Nvidia’s China strategy?

The upcoming B30A could significantly shift the market if approved by Washington. It is expected to deliver up to six times the performance of the H20 while costing only about twice as much.

5. How do U.S. export controls affect Nvidia’s business in China?

Export restrictions limit the types of advanced AI chips Nvidia can sell in China. To stay compliant, Nvidia develops downgraded versions like the RTX6000D and H20, but these are often less attractive to Chinese buyers.

6. Why are Chinese regulators scrutinizing Nvidia?

Beijing recently accused Nvidia of breaching anti-monopoly rules and has questioned tech companies like Tencent and ByteDance over their purchases of restricted chips, citing national security concerns.

7. What is the broader impact of this situation on U.S.–China trade relations?

AI chips are a major flashpoint in U.S.–China tensions. Washington aims to curb China’s AI progress, while Beijing pushes firms to shift toward domestic chips, creating uncertainty for foreign suppliers like Nvidia.