Jensen Huang, CEO of Nvidia, expressed disappointment over reports that China has instructed its leading technology companies to cease purchasing the company’s artificial intelligence (AI) chips. Despite this setback, Huang stated that he would remain “patient” in response to the actions taken by China’s internet regulator. He noted, “There are a lot of places we can’t go to, and that’s fine.” Huang was speaking to reporters while attending a state visit to the UK with other tech leaders, including Microsoft’s Satya Nadella.
Previously, Nvidia, a leading chip manufacturer, faced a sales ban on its most advanced chips to China, a restriction that was lifted by President Donald Trump in July. Following the reversal of this ban, Nvidia is now required to remit 15% of its revenue generated in China to the U.S. government, following an unprecedented agreement made last summer.
According to a report in the Financial Times, China’s Cyberspace Administration has directed tech companies to discontinue the use of Nvidia chips specifically designed for the Chinese market. As a result, Nvidia’s shares experienced a decline of over 1% during premarket trading. Huang also mentioned his intention to support the U.S. in addressing geopolitical issues related to this situation.
The UK is currently hosting a state banquet for Trump, where tech leaders, including Huang, are in attendance. Nvidia recently achieved a significant milestone by becoming the first company in the world to exceed a $4 trillion valuation in 2025. The company has played a crucial role in the global AI boom, with its chips powering data centers worldwide.
In contrast, China is actively pursuing advancements in AI technology and has been developing its own chips to compete with U.S. dominance. Prior to the recent order, Chinese companies such as DeepSeek, Tencent, and Alibaba had been among those ordering Nvidia chips. Nvidia is also involved in investments in the UK, including collaborations aimed at supplying chips for the Stargate UK data center, alongside partners like OpenAI, Arm, and NScale.
Source: https://www.bbc.com/news/articles/cqxz29pe1v0o?at_medium=RSS&at_campaign=rss