Graphics processing leader Nvidia is creating a Chinese-compatible version of its newly acquired Groq artificial intelligence chips, according to industry sources. The development comes as the company resumes production of older chip models for Chinese customers after receiving U.S. export approval.
Graphics processing giant Nvidia is working on a Chinese market-ready version of its recently acquired Groq artificial intelligence processors, according to two industry insiders who spoke with Reuters on Tuesday.
The California-based tech company purchased Groq, a startup specializing in AI chip technology, in a massive $17 billion acquisition late last year. This week at Nvidia’s annual developer conference in San Jose, California, the company unveiled its latest product lineup featuring the Groq-based technology.
This development occurs alongside news that Nvidia CEO Jensen Huang announced the company has resumed manufacturing its H200 processors – the previous generation model before their current top-tier chip – after securing export permits from the Trump administration and receiving purchase commitments from Chinese buyers.
The company intends to utilize Groq’s technology for inference operations, which involve AI systems responding to user queries, generating computer code, and executing various tasks. In this week’s product demonstrations, Nvidia revealed plans to combine the Groq processors with their upcoming Vera Rubin chips, though the latter cannot be exported to China.
Although Nvidia maintains market leadership in AI system training, the company encounters significantly stronger competition in the inference sector. Multiple major Chinese corporations, including search giant Baidu and other artificial intelligence leaders, have already developed their own inference processing technology.
According to one source, the China-bound chips are not reduced-capability versions or specially designed for that market. However, the modified variant can be configured to integrate with alternative systems, with availability expected in May.
Nvidia representatives did not provide immediate comment when contacted about the development.
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