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Nvidia's relationship with China just got even more complicated as report says Jensen Huang was target of spy plot
Yahoo Finance • • business
Key Points:
- In December 2025, Nvidia secured permission from the Trump administration to export some H200 chips to Chinese buyers after a $5 million lobbying effort, though these chips represent less than 1% of Nvidia's $89 billion data center revenue for Q2.
- Despite US approval, Chinese government restrictions have limited Nvidia's chip sales in China as Beijing aims to reduce reliance on US technology and promote domestic alternatives like Huawei.
- Nvidia's CFO stated there is no expected revenue from China’s data center compute market in the near future due to ongoing geopolitical uncertainties and dual-government approval challenges.
- A black-market trade has emerged to circumvent US restrictions, with chips being smuggled into China via Southeast Asia, and companies like Megaspeed under investigation for potentially facilitating these activities.
- Nvidia denies knowledge of any smuggling involving its chips and emphasizes that conversations with employees like Alice Huang do not involve national security information, highlighting the complex geopolitical tensions affecting the AI chip market.
