Following the Trump administration’s restrictions on sales to China, Nvidia CEO Jensen Huang visited Beijing on April 17 to address what he described as a critical market. During his visit, Huang met with Chinese Vice Premier He Lifeng and other key figures. He Lifeng emphasized welcoming US firms like Nvidia to expand in China, leveraging their strengths for global competition. Huang expressed Nvidia’s commitment to supporting China’s tech ecosystem. In response to regulatory requirements, Nvidia aims to optimize its product lineup while serving the Chinese market. Meetings also included discussions on providing DeepSeek with AI processors that meet regulatory standards. Nvidia stated that it regularly engages with government leaders regarding its products and technology. However, these meetings occurred amidst escalating US-China trade and tech disputes. On April 15, Nvidia disclosed that exports of its H20 AI processors now require a US government license, impacting its financial performance. Nvidia anticipates significant charges related to inventory and purchase commitments. Other companies like AMD and Intel are similarly affected by these restrictions. Despite these challenges, Nvidia plans to invest heavily in US-based AI infrastructure, collaborating with Taiwanese manufacturers and suppliers. This move aligns with Trump’s goals, showcasing the ‘Trump Effect.’ The restrictions may disrupt China’s AI computing industry but could also promote local alternatives like Huawei and Cambricon. According to industry experts, Huawei’s new CloudMatrix 394 AI accelerator competes with Nvidia’s top-end solutions. US sanctions seem insufficient to hinder Chinese technological progress. Nvidia risks marginalization in China’s booming AI processor market unless there’s a policy shift.
— new from Asia Times