- Nvidia’s China-Specific H20 chips are off-sale but scaled-down Blackwell chips could be approved
- China is an option of $ 50 billion for nvidia with potential for 50% annual growth
- China may not want to buy nvidia chips over suspected security risks and US comments
NVIDIA administrative director Jensen Huang said discussions with the US government to allow scaled-down Blackwell GPU sales to China has started, but it may take time to reach an appointment.
According to Pakinomist Reporting indicated Trump indicated that Nvidia could sell a less powerful version of Blackwell to China that is 30-50% less skilled than the regular version.
However, the White House fears that even fagged AI chips could support China’s military and technological strength, and thus the delays facing Nvidia with regard to a decision.
Nvidia may begin
Huang estimates that China represents an opportunity for $ 50 billion for Nvidia, potentially growing 50% annually if access to sell chips in the country is allowed. For a company with $ 46.7 billion in quarterly revenue, this is a significant option.
Nvidia had already made the H20 AI-Chip to China to meet export restrictions for the Biden era, but it was banned over security concerns when Trump came to power. Sales of H20 in China are still on the break, but on an expense to Nvidia losing billions in sales.
Meanwhile, China has promoted the use of domestic chips to connect the gap left by the stopped Nvidia sale. The country has also reportedly asked local businesses to avoid Nvidia’s chips with reference to security risks.
China’s reluctance to buy nvidia chips could be further increased following comments from US trade secretary Howard Lutnick, who said the plan is to make China dependent on US tech.
On the flip side, Huang claims that enabling US companies to sell AI chips in China helps the United States set the standards and win the global race.
NVIDIA recently released an increase of 56% year to year in quarterly revenue, noting a deficiency of H20 sales in China and a release of $ 180 million of previously reserved H20 storage from around $ 650 million in unlimited H20 sales.
Huang praised Blackwell’s performance gains and added that Blackwell Ultra production “Ramp at full speed.”
