Nvidia’s Blackwell AI Chips for China: A Potential Reality, Says CEO
Nvidia CEO, Jensen Huang, has hinted at the potential introduction of the company’s advanced Blackwell AI processors to China. This revelation was made during the chipmaker’s Q2 earnings call on Wednesday.
Despite posting a robust revenue of $46.7 billion, marking an increase of 56% year-over-year, Nvidia’s shares experienced a 3.5% dip in after-hours trading. This was primarily due to growth rates showing signs of deceleration compared to previous quarters.
Huang disclosed ongoing negotiations with the Trump administration regarding the procurement of export licenses for modified Blackwell chips. These chips would be designed to comply with U.S. trade restrictions. President Trump has previously shown a willingness to permit a version of Blackwell that is “somewhat enhanced in a negative way”, with a performance reduction of 30-50% compared to the full version.
During Q2, the company reported no H20 chip sales to China, leading to a drastic fall in China’s revenue to $2.8 billion from $5.5 billion in Q1. However, Nvidia is optimistic about potential sales of $2-5 billion in H20 chips, contingent on the geopolitical climate.
Huang stressed the potential of China’s $50 billion AI market, which could see an annual growth of 50%.
Source: CNBC