NVIDIA CEO Jensen Huang is heading to China this week, arriving just before the Lunar New Year celebrations in mid-February. This trip comes at a high-stakes time for the company. NVIDIA is currently trying to figure out how to keep its business running in China while following strict new rules from the U.S. government.
For years, China was a massive source of income for Nvidia. The country accounted for at least 20% of the firm’s data center division’s revenue. But that money is now at risk. The U.S. has blocked Nvidia from selling its most powerful artificial intelligence chips to Chinese companies. Washington wants to maintain a lead in the global AI race and fears that these advanced chips could give Beijing a significant advantage.
Huang’s visit includes both business and social stops. On Monday, he plans to attend a company party in Beijing to celebrate with his local staff. However, the real work happens in his meetings with potential buyers. He needs to address the growing logistical problems of getting U.S.-approved chips into the Chinese market. Even though Nvidia designed less powerful chips specifically to satisfy U.S. regulators, shipping and selling them in China has become incredibly complicated.
The situation took another turn last week when a report suggested that China might place its own limits on Nvidia. According to the report, Chinese authorities might only allow local firms to buy the H200 AI chip if they use it for research purposes. This would be another blow to Nvidia’s sales. Interestingly, when asked about this on Thursday, China’s Commerce Ministry said they knew nothing about such a plan.
Huang is no stranger to these tensions. He visited mainland China three times last year, making a similar trip last January for the holiday. By showing up in person, Huang is sending a clear message that he isn’t ready to give up on the Chinese market, even as political pressure from both sides makes his job harder every day.
