Nvidia CEO Jensen Huang expressed frustration Wednesday after reports that Chinese regulators had instructed major domestic firms, including ByteDance and Alibaba, to stop purchasing the U.S. chipmaker's AI products. The directive, first reported by the Financial Times, targeted Nvidia's RTX Pro 6000D, a chip custom-designed for the Chinese market.
"We can only be in service of a market if the country wants us to be," Huang told reporters in London, where he is accompanying President Donald Trump on a state visit. "We probably contributed more to the China market than most countries have. And I'm disappointed with what I see. But they have larger agendas to work out between China and the United States, and I'm understanding of that."
The move underscores China's effort to reduce reliance on U.S. technology as tensions between Washington and Beijing deepen. The Cyberspace Administration of China (CAC) reportedly issued the order as part of a broader push to strengthen domestic chip capabilities, a priority for Beijing as it ramps up investments in AI infrastructure.
The news sent Chinese technology shares higher. The Hang Seng Tech Index jumped 4.2% to a nearly four-year high, marking its seventh straight session of gains. Investors piled into major internet and AI-linked names including Alibaba, JD.com, Baidu, Tencent, and Bilibili, betting that Beijing's policy shift would funnel demand toward local chipmakers and software developers.
For Nvidia, the directive is the latest blow in what Huang described as a "rollercoaster" relationship with China. The U.S. government has already imposed restrictions on exports of Nvidia's advanced AI chips, including the H20, citing national security concerns. In August, the White House struck a deal granting Nvidia export licenses in exchange for directing 15% of Chinese H20 sales to the U.S. government.
Earlier this week, China's State Administration for Market Regulation opened an antitrust probe into Nvidia's acquisition of Israeli network-solutions company Mellanox, signaling growing regulatory pressure on the U.S. chip giant.
Despite the mounting challenges, Huang emphasized China's importance to Nvidia's long-term strategy. "The Chinese market is important. It's large. The technology industry is vibrant. We've been in service of it for 30 years," he said, adding that Nvidia would continue to support both U.S. and Chinese governments "as they all sort through these geopolitical policies."
Nvidia has shifted focus toward other regions as tensions persist, announcing £11 billion ($15 billion) in investments for U.K. AI infrastructure on Tuesday, alongside similar multibillion-dollar commitments from Microsoft, Google and Salesforce.
