Nvidia CEO Jensen Huang said discussions with the White House over allowing the company to sell a less advanced version of its Blackwell AI chips to China will take time.

He confirmed in a Fox Business Network interview that talks had begun about selling a scaled-down chip that would be 30-50% less capable than the original.

Nvidia is seeking approval to access China’s estimated US$50 billion AI market, though potential sales are not included in its current-quarter forecast due to regulatory uncertainty.

Earlier reports said Nvidia was developing a cheaper Blackwell chip variant for China, but no orders for its current H20 AI chips have been received.

Huang added the company is open to proposals that would secure export approval, including sharing a percentage of sales if required.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Export restrictions may accelerate China’s chip independence efforts

The current approach of limiting Nvidia’s access to China could inadvertently strengthen China’s domestic semiconductor industry rather than weakening it.

When faced with restricted access to advanced U.S. chips, China has responded by dramatically increasing investment in homegrown alternatives, with plans to triple AI chip output by 2025 2.

Chinese competitors like Cambricon have already capitalized on Nvidia’s limited market access, reporting significant revenue growth in early 2025 3.

This reflects a broader pattern where export restrictions can create strong incentives for target countries to develop their own capabilities.

Policy experts at Brookings warn that overly aggressive bans may “inadvertently accelerate China’s development of its own chip capabilities,” potentially creating the very outcome the restrictions aimed to prevent 4.

The Chinese government has committed approximately $300 billion to AI, chips, and electric vehicles, demonstrating the scale of resources being mobilized in response to these constraints 5.

2️⃣ China’s massive AI market represents unprecedented stakes in tech competition

Nvidia’s $50 billion market opportunity estimate in China illustrates why this dispute extends far beyond one company’s revenue prospects 1.

Recent Nvidia developments