Nvidia Negotiates Chip Sales with China Amid AI Race

In discussions with the White House, Nvidia seeks approval to sell a less advanced AI chip to China. Despite trade tensions and national security concerns, CEO Jensen Huang believes these sales benefit both nations, enhancing Nvidia's presence in China's $50 billion AI market.

Nvidia is currently in talks with the White House to authorize the sale of a less advanced version of its latest GPU chip to China, according to CEO Jensen Huang's recent statements. The negotiations with the U.S. government represent an effort to navigate trade tensions and national security concerns.

During an interview with Fox Business Network, Huang emphasized the potential benefits of allowing American technology companies to engage with China, highlighting the competitive edge it offers in the AI race. Despite fears that chip sales could bolster China's military, Huang remains optimistic about reaching a mutually agreeable solution.

Reports in May indicated Nvidia was developing a scaled-down variant of its AI Blackwell chips for the Chinese market, excluding potential revenue from these sales in its current quarter forecast. The potential market for AI in China is estimated at $50 billion, an opportunity Nvidia aims to tap into with strategic agreements and export licenses.

(With inputs from agencies.)