NVIDIA CEO Jenson Huang expressed frustration with the Chinese government’s intervention in his company’s chip sales.
NVIDIA (NVDA) continues to find itself hobbled when it comes to business in China as this week, the nation’s government has issued statements strongly urging its companies not to purchase NVIDIA AI chips. While NVIDIA has faced quite some scrutiny from China, this latest action could heavily affect its plans to expand business in the country as China continues to strive for greater independence in tech manufacturing.
Reports of the Chinese government’s new stance on NVIDIA AI chips first came out via Financial Times this week. According to the story, the Cyberspace Administration of China (CAC) ordered companies such as TikTok parent company ByteDance, Alibaba, and more not buy NVIDIA’s RTS Pro 6000D. It was a chip that was specifically designed for the Chinese market, but with the official order from authorities, it may be a dead end for NVIDIA, at least for now.
Source: Google
NVIDIA CEO Jensen Huang spoke to the matter following the Financial Times report, saying he was “disappointed” in the decision the Chinese government had made, which comes after the government also accused NVIDIA of violating anti-monopoly laws in the country with a 2020 acquisition of a company known as Mellanox. NVIDIA has been flexed between US and Chinese regulations on several occasions, including purchasing new US trade licenses to even export its products to China. Nonetheless, Huang submits that while trade tensions between the US and China continue, it will likely continue to complicate matters:
We can only be in service of a market if the country wants us to be… We probably contributed more to the China market than most countries have. And I’m disappointed with what I see, but they have larger agendas to work out between China and the United States, and I’m understanding of that.
It remains to be seen if NVIDIA can find a path to sales in China, but for now, it looks like it’s an uphill battle as the company continues to navigate international trade situations. Stay tuned to the NVIDIA topic as we continue to follow for more news and updates.
