Nvidia Faces New Hurdles in China Market
Nvidia (NVDA) CEO Jensen Huang addressed growing concerns about the company’s future in China following a report that local tech firms have been directed to avoid using Nvidia’s AI chips. The Financial Times reported Wednesday that China’s Cyberspace Administration advised companies such as ByteDance and Alibaba to cease procurement of Nvidia’s RTX Pro 6000D chips—designed specifically for the Chinese market.
At a press event in London, Huang acknowledged the report and expressed disappointment. “We probably contributed more to the China market than most countries have. And I’m disappointed with what I see,” he said. “But they have larger agendas to work out between China and the United States, and I’m understanding of that.”
U.S. Licensing Deal and Market Uncertainty
Earlier this year, Nvidia secured a deal with U.S. regulators allowing the company to export its H20 chips to China in exchange for committing 15% of its China sales to U.S. government use. That deal was framed as a temporary bridge amid rising tensions.
Despite the agreement, Huang made it clear that Nvidia has moved to de-risk its business exposure in China. “We’ve guided all financial analysts not to include China,” he said, referring to future projections.
Antitrust Scrutiny and Strategic Pivot
The chipmaker also faces a new anti-monopoly probe in China related to its acquisition of Mellanox, an Israeli company specializing in data center networking. This adds further strain on Nvidia’s strategic position in one of the world’s most significant AI markets.
Meanwhile, Nvidia is strengthening its global footprint. On Tuesday, the company announced a £11 billion ($15 billion) investment in AI infrastructure in the U.K., aligning with broader moves by U.S. tech giants to expand internationally amid regulatory headwinds.
Huang Reaffirms Dual-Market Commitment
Despite geopolitical tensions, Huang reiterated Nvidia’s long-standing engagement with China. “The Chinese market is important. It’s large. The technology industry is vibrant. We’ve been in service of it for 30 years,” he said.
He added that Nvidia will continue to support both Chinese and U.S. partners as policies evolve. “We’re going to be supportive of the Chinese government and Chinese companies as they wish, and we’re of course going to continue to support the U.S. government.”
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Final Take: Nvidia Walks the Geopolitical Tightrope
As chip regulations intensify and U.S.-China tensions deepen, Nvidia is navigating one of its most complex international challenges yet. The company’s forward-looking strategy now hinges on broadening its global partnerships while remaining cautiously engaged in China.
Disclaimer
This article is for informational purposes only and does not constitute investment or legal advice. Consult with a qualified advisor before making financial decisions.
