- Nvidia China’s specific H20 chips are out of sale, but scaled Blackwell chips could be approved
- China is an opportunity of $ 50 billion for NVIDIA, with 50% annual growth potential
- It is possible that China does not want to buy Nvidia chips on alleged safety risks and comments from the United States
The CEO of Nvidia, Jensen Huang, said that the discussions with the US government. Uu. By allowing Blackwell GPU sales to China to have begun, but it could take time to reach an agreement.
According PakGazette In informing, Trump indicated that Nvidia could sell a less powerful version of Blackwell to China, which is 30-50% less capable than the regular version.
However, the White House fears that even the chips of the stripped can support the military and technological force of China, hence the delays that Nvidia faces with respect to a decision.
Nvidia can start selling low performance Blackwell in China again
Huang estimates that China represents an opportunity of $ 50 billion for NVIDIA, which potentially grows 50% per year if access is allowed to sell chips in the country. For a company with $ 46.7 billion in quarterly income, that is a considerable opportunity.
Nvidia had already done the H20 AI chip for China to meet the export restrictions of the Biden era, but that was prohibited from security concerns when Trump came to power. H20 sales in China are still in pause, but at a cost of Nvidia, which is losing billions in sales.
Meanwhile, China has been promoting the use of national chips to connect the gap left by the stagnant Nvidia sales. According to reports, the country has also been asking local businesses to avoid Nvidia chips, citing security risks.
China’s reluctance to buy Nvidia chips could increase more after the comments of the United States Secretary of Commerce, Howard Lutnick, who said the plan is to make China addicted to American technology.
On the other hand, Huang argues that allowing US companies to sell AI chips in China help the United States to establish standards and win the global race.
NVIDIA recently recorded an interannual increase of 56% in quarterly revenues, pointing out the lack of H20 sales in China and a release of $ 180 million of previously reserved H20 inventory of around $ 650 million in H20 sales without restrictions.
Huang praised Blackwell’s performance, adding that Blackwell Ultra Production “is increasing at full speed.”
