NVIDIA’s ambitions to penetrate the Chinese market with their Blackwell AI chips have been thwarted, as President Trump brings a halt to any progress in this direction. The administration’s decision blocks Team Green from re-entering Beijing’s lucrative AI sector.
The Stalemate Over Blackwell AI Chips
Jensen Huang, CEO of NVIDIA, faces a significant roadblock in his efforts to re-establish ties with China. Despite a major US-China trade deal, the Blackwell AI chips remain out of reach for the Chinese market. In a CBS News interview, President Trump made it clear that the United States would not permit the export of high-end AI chips to nations like China, singling out Blackwell as a no-go option. This declaration leaves the NVIDIA-China relationship at an impasse.
The most advanced, we will not let anybody have them other than the United States. We don’t give (the Blackwell) chip to other people.
Despite previous comments suggesting that the US government’s role was merely supervisory, the recent statement by President Trump comes as a surprise. NVIDIA not only faces export limitations but also encounters resistance from Chinese authorities, exacerbating the deadlock over their AI chips.
Impacts on NVIDIA’s Financial Prospects
Jensen Huang has openly acknowledged to the media that NVIDIA’s revenue from China has plummeted to zero, and any progress in this market would be considered a significant advantage. Despite maintaining a firm stance, it’s evident that NVIDIA is missing out on substantial financial gains from the Chinese AI market. Before the export restrictions, Beijing represented a considerable portion of NVIDIA’s income. With President Trump’s recent comments, it seems NVIDIA is left with its Hopper H20 AI chip for the Chinese market, which is not seeing widespread success.
The situation is increasingly challenging for NVIDIA, with the possibility of a breakthrough in China appearing more distant than ever.