Nvidia CEO Jensen Huang said the company is in discussions with the US government to offer a new China-focused AI data center chip as a follow-on to its H20, describing the product as based on the firm’s Blackwell architecture but not as powerful as the B200 chip sold in the US and other markets.
Nvidia’s China strategy and US talks
Huang, speaking to reporters while traveling in Taiwan, emphasized that any shipment of the new product to China depends on US government approval. “That’s not our decision to make. It’s up to, of course, the United States government. And we’re in dialogue with them, but it’s too soon to know,” he said. According to Yahoo Finance, Nvidia is positioning the Blackwell-based part as a successor to the H20 tailored for China’s AI data centers.
The report notes Nvidia shares were little changed on the update. The stock is up 29.4% year-to-date and 40.5% over the last 12 months, with a recent quote showing gains during Friday trading. Nvidia plans to report its Q3 earnings after the bell on Wednesday.
Policy shifts around China-bound AI chips
The article recounts that the Trump administration initially banned sales of the H20 to China in April. The H20 itself had been designed to comply with restrictions previously set under the Biden administration. After a meeting with Huang, Trump reversed course, and Nvidia said it would begin shipments in July. Earlier in August, Trump said he would allow Nvidia and AMD to ship AI chips on the condition that companies pay 15% of chip sales to the US government. During a press conference confirming the 15% fee, Trump added he was considering allowing Nvidia to ship a new Blackwell-based chip.
China market dynamics and company response
The article also notes that Chinese officials have warned companies about using Nvidia’s products, alleging potential “backdoor” security risks that could enable tampering. Nvidia has denied the allegation and is working with Chinese authorities to address the issue.
China, including Hong Kong, accounted for $17.1 billion of Nvidia’s $130.4 billion in revenue in its most recent fiscal year, while the US was the company’s largest market with $61.2 billion in sales. AMD was also mentioned in connection with the administration’s 15% fee condition for AI chip shipments.
Huang’s comments suggest Nvidia aims to keep a presence in China within evolving US policy boundaries, with the prospective Blackwell-based follow-on to H20 contingent on ongoing government dialogue, as reported by Yahoo Finance.
