NVIDIA CEO in China amid regulatory challenges
What's the story
NVIDIA CEO Jensen Huang is currently in Shanghai, China, amid fierce competition from local companies and scrutiny from Chinese authorities. The visit comes as part of his annual tradition of celebrating with NVIDIA employees in China, Reuters reports. After the Shanghai event today, Huang plans to visit Beijing, Shenzhen, and then Taiwan.
Regulatory challenges
H200 AI chip faces scrutiny in China
NVIDIA is currently awaiting a decision from Beijing on whether it can sell its advanced H200 AI chips to Chinese customers. The move has already been approved by Washington, but Chinese authorities have reportedly told customs agents that the H200 chip cannot enter China. It remains unclear if this is a permanent ban or a temporary measure.
Geopolitical implications
A flashpoint in US-China relations
The H200, NVIDIA's second most powerful AI chip, has become a major point of contention in US-China relations. Despite strong demand from Chinese firms, it is uncertain if Beijing plans to ban the chip altogether to protect domestic manufacturers. Alternatively, China could still be mulling restrictions or using potential measures as leverage in negotiations with Washington.