Investing.com -- Nvidia (NASDAQ: NVDA ) is preparing to launch a new AI chipset for the Chinese market, priced significantly lower than its recently restricted H20 model, according to a Reuters report.

The chip, part of the company’s latest Blackwell architecture, is expected to enter mass production as early as June, the report added.

The move signals Nvidia’s effort to retain a foothold in China’s $50 billion data center market amid tightening U.S. export controls on high-performance semiconductors.

The report also added that the new GPU will be priced between $6,500 and $8,000—well below the $10,000 to $12,000 range for the now-constrained H20 chip.

This week, UBS analysts slashed their Nvidia estimates "to reflect what may be a bigger impact from the H20 ban that we originally expected."

While the new product is not yet finalized, and U.S. government approval is still pending, Nvidia’s response highlights the growing complexity of serving a critical but increasingly restricted market.

“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 told Reuters.