Nvidia Developing New AI Chips for China Using Groq Technology; Availability Could Come As Early As May: Report

Nvidia Corp (NASDAQ:NVDA) is reportedly preparing a new line of artificial intelligence chips for the Chinese market using technology from Groq. Nvidia Eyes China With New AI Chip Strategy Unlike prior export-compliant chips, the Groq-based processors are not downgraded versions specifically designed for China, Reuters reported on Tuesday, citing sources. Instead, they are adaptable for use across different systems. The Groq-based chips are expected to become available as early as May, the report added. Nvidia did not immediately respond to Benzinga's request for comments. The company earlier this week showcased products built around this architecture at its annual developer conference in San Jose, California. Navigating Export Restrictions The new chips are part of Nvidia's broader strategy to continue serving China despite U.S. export controls. While speaking with reporters at the GTC conference, Nvidia CEO Jensen Huang also revealed that the company has resumed production of its H200 chips. Focus Shifts To AI Inference Nvidia plans to deploy these chips for AI "inference," the stage where systems generate responses, write code, or perform tasks. While Nvidia dominates AI training hardware, the inference segment is becoming increasingly competitive. Chinese firms, including Baidu Inc. (NASDAQ:BIDU), have already developed their own inference chips, intensifying pressure on Nvidia in the region. $1 Trillion Opportunity Ahead During his keynote, Huang highlighted the growing importance of inference, calling it a major inflection point for the industry. He also said demand continues to accelerate and projected Nvidia's AI-related revenue opportunity could reach $1 trillion by 2027. Price Action: On Tuesday, Nvidia shares settled at $181.93, slipping 0.69%. It rose 0.22% to $182.33 in after-hours trading, according to Benzinga Pro. Benzinga Edge Stock Rankings show the stock remains weak over the short and medium term but is trending higher in the long run, with a Growth score in the 97th percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: Mijansk786 on Shutterstock.com