Rumor
Nvidia prepares Groq chips compliant with export controls for the Chinese market
Tuesday, March 17, 2026 at 11:59 PM
Reports indicate that Nvidia is developing specific versions of Groq chips designed to comply with export regulations for sale within the Chinese market.
Context
Nvidia is preparing a new version of its Groq artificial intelligence chips specifically for the Chinese market, marking a strategic pivot to capture inference workloads. This move follows Nvidia's late-2025 technology licensing deal with Groq—a transaction valued at approximately $17 billion—to bolster its position in the rapidly growing market where AI systems execute tasks like coding and reasoning. The new variant is expected to be available in May 2026 and is designed to be adaptable for varied systems without being a specifically downgraded version.
This development occurs as Nvidia navigates complex U.S. export controls under the Trump administration, which previously caused a $4.5 billion inventory charge due to restrictions on the H20 chip. CEO Jensen Huang recently confirmed that the company has restarted production of its H200 chips after securing specific export licenses and a 25% revenue-sharing framework with the U.S. government. By leveraging Groq’s Language Processing Unit technology, Nvidia aims to regain market share in China, which fell from 95% to roughly 50% amid intensifying competition from domestic rivals like Huawei and Baidu.
Sources (10)
nvda-20260125Exclusive: Nvidia to launch cheaper Blackwell AI chip for China after US export curbs, sources say | ReutersNvidia Says It Is Restarting Production of AI Chips for Sale in ChinaNvidia CEO hammers chip controls that 'effectively closed' China China's ByteDance to access 36,000 Blackwell GPU cluster through Malaysia cloud operator — Nvidia confirms no objections, deal is in line with US export controls | Tom's HardwareNvidia restarts China AI chip manufacturing as CEO forecasts $1 trillion in orders By Investing.comNvidia restarts China AI chip manufacturing as CEO forecasts $1 trillion in orders By Investing.comThe Consequences of Exporting Nvidia’s H200 Chips to China | Council on Foreign Relations
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