Nvidia CEO says there is no proof of AI chips being diverted to China

Nvidia CEO Jensen Huang stated that there is no evidence suggesting the company’s high-value semiconductor chips are being redirected to China, expressing confidence in the integrity of Nvidia’s trading partners.

Speaking to reporters in Taipei, he mentioned that Nvidia’s customers were aware of the regulations and self-monitoring. He added, “The important thing is that the countries and the companies that we sell to recognize that diversion is not allowed, and everybody would like to continue to buy Nvidia technology. And so they monitor themselves very carefully.”

His comments follow President Donald Trump’s decision to revoke the Biden administration’s AI diffusion rules, which aimed to prevent advanced chip exports from being rerouted to China.

Nvidia’s new hardware is too large to be easily smuggled

Huang emphasized the sheer size of Nvidia’s latest flagship product—the Grace Blackwell system—noting that it weighs nearly two tons and is far from something one could carry in a backpack or pocket. The system, marketed as a multimillion-dollar integrated solution, can include up to 36 processors and 72 graphics processing units.

Huang reaffirmed his opposition to trade restrictions and said that restricting American technology globally was “precisely wrong.” Still, Huang welcomed Trump’s new policies. He said, “It should be maximizing American technology around the world.”

Huang spoke a few days after accompanying the president’s US delegation to the Middle East and praised the opening of trade for Nvidia’s hardware. After the removal of Biden-era regulations, the United Arab Emirates and Saudi Arabia will be able to increase their access to Nvidia’s cutting-edge technology and develop their artificial intelligence capabilities.

When asked if he would prioritize Middle Eastern clients, Huang responded that proper forecasting would enable the company to develop the technologies for everyone.

Several US officials view China as a serious danger to US interests and global stability

President Donald Trump’s rush of artificial intelligence deals during his Middle East tour created a rift within his own administration as China hawks became more worried that the projects were endangering US economic and national security.

Though the Trump administration cut deals for Saudi Arabian parties to buy tens of thousands of chips from Nvidia Corp. and Advanced Micro Devices Inc., shipments to the United Arab Emirates could exceed one million accelerators, mostly for projects that include or are owned by US entities. In the AI era, the most greatly desired technology is these chips, which are used to build and train models that can mimic human cognition.

However, some senior administration officials were seeking to block the sales because they believed the United States had not yet put in place sufficient safeguards to prevent American chips sold to the Gulf from being used in China, according to sources familiar with the matter.

These officials argue that while the deal between the UAE and Saudi Arabia features clauses to prevent Chinese companies from accessing these chips, too many details still need to be worked out. The officials said the agreements should not be announced publicly until the legally binding language is in place.