Nvidia CEO Jensen Huang Heads to China Amid AI Chip Sales Challenges

Nvidia CEO Jensen Huang is set to visit China in the coming days, just ahead of the mid-February Lunar New Year, sources familiar with the matter told CNBC. The visit comes at a delicate time for the U.S. chipmaker, which has faced mounting challenges selling its most advanced AI chips in the Chinese market.

China has historically been one of Nvidia’s most important markets, accounting for roughly one-fifth of its data center revenue. However, U.S. export restrictions now prevent the company from selling its top-tier chips for AI development, creating significant barriers for Huang and his team.

During his trip, Huang is expected to attend an Nvidia company event in Beijing and meet with potential buyers to address recent logistical issues around shipping U.S.-approved Nvidia chips to China. The meetings could help clarify how Nvidia plans to navigate the complex regulatory landscape while maintaining business growth.

Recent reports indicate that China will only allow limited local use of Nvidia’s H200 AI chips, primarily for research purposes. When asked about the reports, China’s Commerce Ministry said it was unaware of the situation, adding uncertainty to the market. Analysts note that the restrictions could slow Nvidia’s momentum in the world’s second-largest tech economy.

Huang is no stranger to China, having visited at least three times last year, including during Lunar New Year celebrations. The upcoming trip underscores the growing tension between global tech ambitions and geopolitical regulations, and highlights Nvidia’s efforts to maintain its foothold in a crucial market.

source: cnbc