Nvidia Chief Executive Voices Disappointment Over Alleged China AI Chip Purchase Restriction
The head of the leading chipmaker has stated that he is "disappointed" by reports indicating that China has instructed its top tech firms to cease purchasing the firm’s AI chips.
The executive noted that he plans to be "understanding" in responding to this decision by China’s internet regulator.
"We are restricted in many markets, but we accept that," he told reporters on Wednesday.
Nvidia, which previously faced a ban on selling its top-tier chips to China, had witnessed that limitation reversed this summer.
As part of a previous deal, Nvidia must contribute 15% of its Chinese revenue to the American authorities.
That same day, news surfaced that China’s Cyberspace Administration had reportedly directed tech companies to halt use of Nvidia chips designed specifically for the local audience.
Shares of the American firm dropped by more than 1% in premarket trading.
Mr Huang emphasized that he would "support the US" as they attempt to resolve geopolitical challenges, and planned to express the identical stance if asked during meetings later.
Nvidia recently became the first company globally to reach a $4tn market cap.
Its processors are integral to the global AI boom, powering server farms around the globe.
China, however, aims to rival US dominance in AI and has been creating domestic semiconductors as part of its broader tech plan.
Leading Chinese companies such as Tencent had previously purchased the company’s chips prior to the recent purchase restriction.
Nvidia was among multiple American technology firms that announced investments in the United Kingdom as part of a joint technology pact.
The commitment involves providing chips for the Stargate UK data centre set to launch in north-east England, in partnership with NScale.