Why Chinese AI projects worth $3B are at risk
What's the story
Chinese artificial intelligence (AI) projects worth over $3 billion are at risk due to the recent resignation of NVIDIA founder Jensen Huang. The move comes amid a scandal over his ties with a Chinese businesswoman suspected by US authorities of intelligence ties to Beijing. A Reuters analysis has found more than $3 billion in Chinese computing projects dependent on NVIDIA's restricted processors, highlighting the continued demand for its hardware despite US efforts to restrict Beijing's access.
Resignation impact
Huang's previous remarks raise concerns amid ongoing restrictions
Huang, who had advocated for easing export restrictions, had previously stated that NVIDIA's market share in China had plummeted from 95% to zero.
The company has also excluded China data-center computing revenue from its forecasts due to regulatory uncertainty.
However, this doesn't mean that Chinese demand has disappeared.
Despite NVIDIA's statements on its ability to compete and sell directly in China, documents reviewed by Reuters show Chinese customers still planning purchases and even using restricted processors in some cases.
Project details
Chinese AI data-center projects using restricted NVIDIA chips
Developers and institutions across China are working on AI data-center projects worth billions of dollars, using restricted NVIDIA H100, H200, and H800 processors.
These projects range from large regional computing hubs to retrofitted commercial sites.
One such facility in northwestern Gansu province was supposed to install thousands of NVIDIA chips before year-end but it's unclear if those processors ever arrived.
Operational risks
Potential challenges for operators as export controls tighten
While some facilities are already operational or under construction, operators face challenges such as delays, supply disruptions, or costly redesigns around domestic chips as export controls tighten. Huang's departure could exacerbate these vulnerabilities by weakening NVIDIA's lobbying leverage amid US lawmakers' push for tighter controls.
Export controls
US restrictions on NVIDIA's advanced AI processors
The US began restricting NVIDIA's advanced AI processors in 2022 and later expanded controls to modified chips designed for China, including the H800.
In January, the Trump administration decided to review H200 export licenses for eligible Chinese customers on a case-by-case basis with conditions.
Despite these restrictions, an IDC report cited by Reuters in October estimated that NVIDIA still accounted for 34% of Chinese AI-accelerator shipments in the first half of 2026.