Nvidia still hasn't sold its U.S.-approved China AI chips — and it’s worried local AI rivals could take over
#Nvidia #China AI chips #US export restrictions #H200 #Chinese AI rivals #Global AI industry #Tech competition #Semiconductor market
📌 Key Takeaways
- Nvidia hasn't sold any approved H200 chips to China despite US government approval
- China previously accounted for at least 20% of Nvidia's data center revenue
- Chinese AI rivals are gaining momentum through recent IPOs
- Nvidia warns Chinese competitors could disrupt global AI industry structure
- Chinese AI products are typically far cheaper than US counterparts
📖 Full Retelling
Nvidia, the US chip giant, has yet to generate revenue from its advanced AI chips approved for China despite Washington easing export restrictions, with the company's CFO Colette Kress revealing no sales have occurred amid security scrutiny in both countries and growing competition from Chinese AI firms. While small amounts of H200 products for China-based customers received US government approval, Kress stated during an earnings call that 'we have yet to generate any revenue' and 'do not know whether any imports will be allowed into China.' China previously accounted for at least one-fifth of Nvidia's data center revenue, making the stalled sales particularly concerning for the company. The situation stems from a complex regulatory landscape where US export controls initially forced Nvidia to develop a lower-capability H20 chip for China, followed by new rules that halted those sales before President Trump in December allowed the more advanced H200 chip to be shipped to China, provided the US receives a 25% cut of sales. Despite Nvidia CEO Jensen Huang's lobbying efforts and a trip to China earlier this year, sales remain frozen, prompting the company to warn investors about rising competition from Chinese AI firms that have recently gone public in Hong Kong and mainland China.
🏷️ Themes
US-China Tech Competition, Global AI Industry, Export Controls, Market Disruption
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Nvidia
American multinational technology company
Nvidia Corporation ( en-VID-ee-ə) is an American technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, it develops graphics processing units (GPUs), systems on chips (SoCs), and application programming interfaces (APIs) for...
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Original Source
BEIJING — U.S. chip giant Nvidia has yet to recoup its lost sales in China, despite Washington easing some restrictions, and the company is sounding the alarm about rising competition from Chinese rivals. "While small amounts of H200 products for China-based customers were approved by the US government, we have yet to generate any revenue," Nvidia's CFO Colette M. Kress said on an earnings call Wednesday local time, according to a FactSet transcript. "We do not know whether any imports will be allowed into China," she said. China once accounted for at least one-fifth of Nvidia's data center revenue. watch now VIDEO 5:35 05:35 Nvidia CEO Jensen Huang on AI's pressure on software stocks Squawk Box Asia U.S. export controls previously forced Nvidia to develop a lower-capability chip for the Chinese markets called the H20. New rules last April required Nvidia to halt those sales , before U.S. President Donald Trump in December allowed the U.S. company to ship the more advanced H200 chip to China, provided the U.S. got a 25% cut of sales. But sales have stalled amid reports of security scrutiny in both countries, despite Nvidia CEO Jensen Huang's lobbying in Washington, D.C. and a trip to China earlier this year . Global AI disruption The semiconductor giant also warned investors about rising competition from the world's second-largest economy. "Our competitors in China, bolstered by recent IPOs, are making progress and have the potential to disrupt the structure of the global AI industry over the long-term," Kress said. She urged the U.S. to encourage every developer and business, including those in China, to use American technology. Weekly analysis and insights from Asia's largest economy in your inbox Subscribe now A flurry of Chinese AI chipmakers and large language model developers have gone public in Hong Kong and mainland China in the last few months. Expectations that the companies could be alternatives to U.S.-developed AI technology have helped the stocks — suc...
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