Nvidia (NVDA, Financials) is preparing to reenter China's AI data center market with a custom B40 processor, Shenzhen-based ZJK Industrial said Thursday. ZJK plans to begin mass production of the B40 chip as early as this month, aiming to meet growing demand for “Nvidia's B40 project,” according to a company news release.
The B40 accelerator is based on Nvidia's Blackwell architecture and targets mid- to high-end Chinese customers. Nvidia has been unable to ship AI data center products to China since the U.S. government barred its H20 processor in early April. “We are still evaluating our limited options. Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China's $50 billion data center market,” an Nvidia spokesperson said.
On Thursday, Nvidia shares fell 1.4 percent to $139.99 in New York trading. Meanwhile, ZJK Industrial stock jumped 12 percent to close at ÂĄ5.40 in Shenzhen. ZJK, which supplies precision components for electronic and AI systems, said that B40 shipments could exceed one million units by year-end, complementing Nvidia's global RTX Pro 6000 workstation graphics cards.
Nvidia CEO Jensen Huang told analysts on a May 28 conference call that the company is exploring options to serve Chinese customers again. If the B40 design receives U.S. approval, Nvidia could regain access to China's lucrative data center market. For now, Chinese partners such as ZJK are taking the lead in adapting Nvidia's architecture to local regulations and demand.
