Nvidia CEO Jensen Huang sees a promising opportunity to sell modified Blackwell AI chips in China, contingent on U.S. licensing approvals. According to Huang, China’s AI market might grow 50% annually, potentially reaching $50 billion in 2025, becoming an attractive market for Nvidia.
Huang has been actively lobbying U.S. officials to permit more access for American tech firms like Nvidia to the Chinese market. In recent months, he has visited the White House twice to secure export licenses for their H20 chip, which faces stringent U.S. regulations. The Trump administration has allowed Nvidia to sell H20 chips in China if 15% of generated revenue goes to the U.S. government.
In light of such conditions, Nvidia has not recorded any H20 sales in China recently but showed strong overall financial performance. The company posted a $54 billion revenue in the second quarter, marking a 56% increase from the previous year. However, the U.S. government has not finalized the regulations regarding the 15% revenue share from H20 sales.
Huang advocates for Nvidia processors to remain a viable option for Chinese developers to support their advancement in AI. He states the potential growth of the Chinese market could facilitate a yearly 50% increase. Meanwhile, reports also suggest Nvidia is developing a new AI chip for China, the B30A, which is rumored to surpass the performance of its H20 model. This newer chip might feature a single-die design, enabling better power efficiency.
Despite these advancements, the geopolitical landscape remains complex. Chinese authorities are keen on fostering domestic semiconductor production, partly to reduce dependency on foreign chips. Reports indicate that state-run computing centers are being pushed to rely more on local manufacturers for their chip supplies, shifting focus towards homegrown technology.
