--- title: "NVIDIA Prepares a Special AI Chip for China Based on Groq Technologies: A Bet on LPU and SRAM to Bypass Export Restrictions" description: "NVIDIA is preparing a special AI chip for the Chinese market based on Groq technologies featuring LPU and large SRAM memory, attempting to stay within US export restrictions and maintain its position in the PRC." date: 2026-08-23T17:22:26.000Z lang: en url: https://xab.info/en/posts/nvidia-groq-ai-chip-china-export-restrictions tags: [nvidia, groq, china, ai-chips, export-controls, lpus, sram, smic, risc-v] publisher: "XAB.info" --- # NVIDIA Prepares a Special AI Chip for China Based on Groq Technologies: A Bet on LPU and SRAM to Bypass Export Restrictions ![NVIDIA logo over the Chinese flag: company prepares a special AI chip based on Groq technology to bypass export restrictions](https://xab.info/media/2026/08/24/nvidia-groq-chip-kitay-ii-chipy/nvidia-groq-chip-kitay-ii-chipy-1.webp) ## 🎯 Key Points - NVIDIA is developing a special AI chip for China based on Groq's LPU technologies, whose rights and part of whose assets were acquired in December 2025. - Groq's architecture bets on a large volume of fast SRAM memory and compiler-planned computations to minimize latency when processing AI queries. - The new chip must account for US export restrictions, including requirements on HBM volume and the availability of CoWoS packaging, against the backdrop of the H200 export authorization and Beijing's calls to forgo American accelerators. - China is developing its own alternatives β€” RISC-V, 3D memory, compute-near-memory β€” while SMIC benefits from domestic demand, narrowing NVIDIA's window of opportunity. Against the backdrop of a protracted standoff over the supply of American accelerators to China, NVIDIA, according to available reports, is developing a specialized solution that should allow the company to maintain the competitiveness of its products in the Chinese market while staying within the sweeping export restrictions imposed by the United States. The key feature of the new chip, reportedly, will be Language Processing Units (LPU) β€” technologies belonging to the startup Groq, whose rights and a portion of whose assets NVIDIA acquired back in December 2025. In doing so, the company is attempting not merely to circumvent regulatory barriers but to adapt its architecture to the new realities of the Chinese market before it loses its foothold there entirely. ### Groq and LPU: A Bet on SRAM and Pre-Planned Computations Unlike traditional GPU accelerators, Groq's architecture places its main bet on a massive amount of fast SRAM memory and computations that are planned in advance by the compiler. By design, this approach allows developers to minimize latency and deliver very high speeds in processing queries to AI models. For the Chinese market, where demand for inference and generative models is growing, this looks like an attempt to offer a product with predictable performance in a situation where conventional accelerators with cutting-edge HBM memory are subject to restrictions. ### The Export Labyrinth: H200, HBM Requirements, and CoWoS The development is particularly timely given the ambiguous situation surrounding the supply of American accelerators to China. The Trump administration, according to reports, has authorized the export of the NVIDIA H200 model, but Beijing has responded by urging local companies to forgo purchasing them. Amid this dual uncertainty, the new chip must account for the current US restrictions, including requirements on the volume of HBM memory and the availability of advanced packaging technologies such as CoWoS. In other words, NVIDIA is searching for a "golden middle": a product powerful enough for Chinese clients, yet not exceeding what Washington is willing to allow for export. ### Chinese Alternatives and the Growing Role of SMIC Meanwhile, China is actively developing its own alternatives, which increases pressure on NVIDIA. Local manufacturers are experimenting with RISC-V processors, three-dimensional memory architectures, and compute-near-memory. Against this backdrop, SMIC is already reaping significant benefits from growing domestic demand for local chips. For NVIDIA, this means that the window of opportunity in the Chinese market is narrowing: the longer the company waits, the more market share shifts to domestic vendors supported by a state policy of self-sufficiency. ### Contradictory Data Sources differ on how deeply Groq is integrated into NVIDIA. One description speaks of acquiring "rights to technologies and part of the assets" of Groq, while other publications indicate that around 90% of the startup's employees will move to work at NVIDIA and receive generous payouts, which in effect means the acquisition of the team, not just the technologies. Moreover, some materials portray Groq as a potential "hidden threat" to NVIDIA's own dominance, whereas in the context of the Chinese chip, Groq appears as a tool that NVIDIA is using to retain its position. These discrepancies in emphasis and in the assessment of the scale of integration should be taken into account when interpreting the news. ### Strategic Significance: Adaptation, Not Circumvention Taken together, these steps point to a shift in tactics: NVIDIA appears to be trying not simply to bypass restrictions but to restructure its products to fit the specific regulatory and market conditions of China. The use of LPU with an SRAM architecture allows the company to reduce its dependence on the components (HBM, advanced packaging) that are under the greatest pressure from export controls. If this approach works, the company will retain access to one of the largest AI markets; if it does not β€” Chinese alternatives based on RISC-V and SMIC's local manufacturing capacity may fill the vacated niche before NVIDIA offers a competitive product. ## πŸ” Fact-Check Verification - [NVIDIA Prepares a New AI Chip for China with Groq Technologies](https://www.goha.ru/nvidia-gotovit-novyj-ii-chip-dlya-kitaya-s-tehnologiyami-groq-lb2Ljm) - Основной источник ΠΏΠΎ Ρ‚Π΅ΠΌΠ΅: Π½ΠΎΠ²Ρ‹ΠΉ ИИ-Ρ‡ΠΈΠΏ для ΠšΠΈΡ‚Π°Ρ с тСхнологиями Groq, LPU ΠΈ SRAM-Π°Ρ€Ρ…ΠΈΡ‚Π΅ΠΊΡ‚ΡƒΡ€Π°. - [Groq: A Hidden Threat to Nvidia's Dominance?](https://www.finversia.ru/publication/groq-skrytaya-ugroza-dominirovaniyu-nvidia-162087) - ΠšΠΎΠ½Ρ‚Π΅ΠΊΡΡ‚ ΠΎ стратСгичСском Π·Π½Π°Ρ‡Π΅Π½ΠΈΠΈ Groq ΠΈ Π΅Π³ΠΎ Π²ΠΎΠ·ΠΌΠΎΠΆΠ½ΠΎΠΉ Ρ€ΠΎΠ»ΠΈ ΠΎΡ‚Π½ΠΎΡΠΈΡ‚Π΅Π»ΡŒΠ½ΠΎ доминирования NVIDIA. - [Around 90% of Groq Startup Employees Will Move to Nvidia and Receive Generous Payouts](https://3dnews.ru/1134591/okolo-90-sotrudnikov-startapa-groq-pereydut-na-rabotu-v-nvidia-i-poluchat-shchedrie-viplati) - Π£ΠΊΠ°Π·Ρ‹Π²Π°Π΅Ρ‚ Π½Π° ΠΌΠ°ΡΡˆΡ‚Π°Π± ΠΈΠ½Ρ‚Π΅Π³Ρ€Π°Ρ†ΠΈΠΈ Groq Π² NVIDIA (ΠΏΠ΅Ρ€Π΅Ρ…ΠΎΠ΄ порядка 90% сотрудников), Ρ‡Ρ‚ΠΎ уточняСт Ρ„Π°ΠΊΡ‚ приобрСтСния Π°ΠΊΡ‚ΠΈΠ²ΠΎΠ²/Ρ‚Π΅Ρ…Π½ΠΎΠ»ΠΎΠ³ΠΈΠΉ. - [Nvidia Prepares a Special Version of Groq AI Chips for the Chinese Market](https://3dnews.ru/1138466/nvidia-gotovit-dlya-kitayskogo-rinka-osobuyu-versiyu-iichipov-groq) - Π£ΠΊΠ°Π·Ρ‹Π²Π°Π΅Ρ‚ Π½Π° ΠΌΠ°ΡΡˆΡ‚Π°Π± ΠΈΠ½Ρ‚Π΅Π³Ρ€Π°Ρ†ΠΈΠΈ Groq Π² NVIDIA (ΠΏΠ΅Ρ€Π΅Ρ…ΠΎΠ΄ порядка 90% сотрудников), Ρ‡Ρ‚ΠΎ уточняСт Ρ„Π°ΠΊΡ‚ приобрСтСния Π°ΠΊΡ‚ΠΈΠ²ΠΎΠ²/Ρ‚Π΅Ρ…Π½ΠΎΠ»ΠΎΠ³ΠΈΠΉ. ## ❓ FAQ ### Q: What is an LPU and why is NVIDIA using Groq's technologies? **A:** An LPU (Language Processing Unit) is Groq's architecture, which bets on a large volume of fast SRAM memory and computations planned in advance by the compiler. NVIDIA acquired the rights to these technologies and part of Groq's assets in December 2025 and, according to reports, is using them in a new chip for China to reduce latency when processing AI queries. ### Q: Why is the new chip tied to US export restrictions? **A:** The new chip must account for the current US restrictions, including requirements on the volume of HBM memory and the availability of advanced packaging technologies such as CoWoS. This is important against the backdrop of the H200 export authorization and the simultaneous calls from Beijing to forgo American accelerators. ### Q: What alternatives is China developing? **A:** Chinese manufacturers are experimenting with RISC-V processors, three-dimensional memory architectures, and compute-near-memory, while SMIC is benefiting from growing domestic demand. This creates competition for NVIDIA in the Chinese market.