Artificial Intelligence chip maker Nvidia has revealed it won’t send any graphics processing unit plants to China. The company’s remarks came after a report that it is working on a research and development center in Shanghai in light of recent U.S. export limitations.
Since 2022, the AI chipmakers industry has been hit with major China curbs, as the U.S. initiated crackdowns on sending advanced chips to China due to concerns of possible military use. Last week, U.S. President Donald Trump revealed his administration would replace restrictions put in place under President Joe Biden with a much simpler rule that unleashes American innovation and ensures American AI dominance.
Nvidia refutes sending GPU designs to China
$NVDA SAYS IT IS NOT SENDING GPU DESIGNS TO CHINA DESPITE REPORTS OF NEW SHANGHAI OPERATION 👀 pic.twitter.com/UKe2mlKY6j
— Shay Boloor (@StockSavvyShay) May 16, 2025
Two sources familiar with the matter said that Nvidia is not sending GPU designs to China to be modified to comply with export controls. The company’s representative denied the claims, arguing there was no basis for any of the allegations.
It was alleged that the company’s CEO, Jensen Huang, discussed the potential center with Shanghai’s mayor, Gong Zheng. The report noted that Huang is considering establishing a joint venture in China to maintain operations of the company’s CUDA computing platform.
According to Huang, the new development center will assess ways to meet U.S. restrictions while catering to the local market, although production and design will continue outside China.
“We have to stay agile. Whatever the policies are of the government, whatever is in the best interest of our country, we’ll support.”
-Jensen Huang, CEO of Nvidia.
Last month, the AI chipmaker acknowledged that it would consider a $5.5 billion charge for selling its H20 GPUs in China and other countries. Huang has also previously highlighted the significance of China, which is one of Nvidia’s major markets after the U.S., Singapore, and Taiwan.
The firm’s executive argued this month that leaving the world’s second-largest economy would be a tremendous loss. Huang estimated that China’s AI market could hit $50 billion over the next two to three years.
Huang also announced on May 14 the Blackwell deal, an agreement with Saudi Arabia to develop the country’s artificial intelligence capabilities. He noted that the partnership exceeds the AI chip leader’s conventional Western collaborations. Nvidia’s CEO also believes the joint venture serves as a litmus test for future U.S. export policies with nations that keep close ties with Washington and China.
U.S. issues AI chip restriction on China
Anyone, anywhere using Huawei Ascend chips could be prosecuted for violating US export restrictions.
A Chinese company using a 100% Chinese designed and manufactured chip, in China, would be violating US export restrictions. So you better stick to US AI chips.
But anyone,… https://t.co/c2hsKAQAnx
— John Pang (@jynpang) May 14, 2025
While the U.S. President Donald Trump was visiting Saudi Arabia, the White House also announced a new round of AI chip restrictions targeting Beijing. The U.S. Commerce Department warned against using U.S. AI chips for Chinese models and singled out diversion tactics and securing supply chains to target smuggling.
The U.S. also singled out the Chinese firm Huawei, labeling the use of the company’s Ascend chips anywhere in the world as a violation of export controls. The U.S. also eliminated the AI Diffusion Rule, adding another layer of controls for the AI chipmaker to navigate.
The Biden administration introduced the AI Diffusion Rule earlier this year to control how AI software and chip technology could be shared across borders. The rule also came with strict restrictions on exports to China and other high-risk nations. The U.S. is also tightening restrictions on countries that might re-export advanced tech to Beijing.
Trump’s separate license requirements, requiring Nvidia and AMD to obtain government approval before exporting advanced chips to China, stay put. The Commerce Department acknowledged that it would unveil a full replacement for the diffusion rule in the future.
The U.S. is also tightening restrictions on countries that might re-export advanced tech to Beijing. Trump’s administration reportedly considers a bilateral negotiation model instead of broad global restrictions, where advanced AI chips could become a tool in country-by-country trade agreements. At the same time, Beijing’s rapid progress in developing domestic AI chip alternatives, including those from Huawei and SMIC, suggests that any gaps left by Nvidia could quickly be filled.
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