Jensen Huang Affair With Alleged Chinese Spy Puts Nvidia China Ambitions Under Scrutiny at TechCrunch

China remains a major market

China has historically been an important market for Nvidia, but its importance has declined amid strict U.S. export controls and Beijing’s push for domestic alternatives. In the three months ended July 26, Nvidia reported $7.9 billion in revenue from customers headquartered in China, about 8% of its total.

Huang has repeatedly urged the U.S. government to allow more Nvidia chips into China. He met several times with President Donald Trump and administration officials last year; the government later reversed restrictions on Nvidia’s H20 chips and permitted exports of its more powerful H200 processors.

Huang has challenged restrictions

Huang has called export controls a “failure” at a conference last year, and in May said it was “not wise” for the U.S. and China to build separate AI ecosystems. He has also argued that excluding Nvidia from China’s computing market could help Chinese companies develop chips that compete internationally.

China is pursuing domestic options. Reuters reported last week that about 600,000 H200 chips were being held in Hong Kong while awaiting shipment to mainland China. Beijing is encouraging AI companies to prioritize chips made by Chinese firms.

Political questions could linger

Huang’s push for China access began before his reported meeting with Alice Huang at an Nvidia event in early 2024. The article argues that the affair may not explain his lobbying, but says the allegations could bring new scrutiny to Nvidia’s business relationships and its safeguards against unauthorized access to sensitive technology.