In a surprising turn of events, Nvidia, the American multinational technology company, has announced plans to release three new (AI) chips specifically for China. This news comes less than a month after U.S. officials tightened the rules on selling high-end AI chips to China.

The Backstory
Last month, new export restrictions were announced by the U.S., which blocked Nvidia from selling two of its modified advanced AI chips – the A800 and H800 – both of which were created for the Chinese market last year to comply with previous export rules. One of the company’s top-of-the-line gaming chips, the L40S chip, which it announced in August, would also be affected.

The New Chips
According to local media reports, Nvidia is planning to release three new chips for China. These chips, namely the HGX H20, L20 PCIe, and L2 PCIe, could be announced as soon as November 16. Nvidia declined to comment when asked about the report.

Impact on the Market
Nvidia has commanded more than 90% share of China’s $7bn AI chip market. Analysts have said the U.S. curbs are likely to create opportunities for domestic firms such as Huawei to make inroads. Chinese internet giant Baidu placed a sizable order for Huawei AI chips this year.

Insiders View
The move by Nvidia to release new chips for the Chinese market is seen as a strategic one, aimed at maintaining its strong presence in the market. It remains to be seen the reception of Nvidia’s new AI chips in the Chinese market and their impact on U.S.-China trade.