BEIJING, Nov 13 (Reuters) – Nvidia … data-centre market, but a Reuters review has identified more than $3 billion in Chinese computing projects built around the American chipmaker's restricted processors ….
So, here’s the scoop: Nvidia, the big cheese in the AI chip game, just got a rude awakening thanks to U.S. export controls that have practically locked them out of the Chinese AI data-centre market. But wait! There’s more! A recent Reuters review uncovered that despite these restrictions, there’s more than $3 billion worth of Chinese AI projects still heavily relying on Nvidia’s chips. Yes, you heard that right—$3 billion. That’s not pocket change, folks.
Let’s break this down a bit. The Reuters review looked at over 150 procurement notices and investment plans scattered across China—from the glitzy tech hubs on the coast to the more remote western provinces. And guess what? Nvidia’s tech is still deeply embedded in China’s AI aspirations. It’s like trying to pull a weed out of your garden but finding that it has a root system that stretches halfway across the yard.
Now, these projects aren’t just a few random computer nerds trying to build their own AI overlords in their basements. We’re talking about local governments, universities, and even regional computing centers—all getting cozy with Nvidia’s hardware. The findings suggest that even as the U.S. keeps tightening the screws on exports to China, the demand for Nvidia technology hasn’t exactly disappeared. It’s like trying to keep a cat off a countertop—good luck with that.
And to make things juicier, Nvidia co-founder Jensen Huang just resigned amid a scandal involving his relationship with a businesswoman who’s reportedly on the radar of U.S. intelligence. Talk about timing! Huang was known to be a champion of easing export restrictions, so his exit might just shake things up in the already turbulent waters of U.S.-China tech relations.
As if that wasn’t enough, let’s talk about the projects in the pipeline. Developers across China are pushing forward with AI data-centre projects designed around Nvidia’s restricted processors. We’ve got everything from massive regional computing hubs to commercial sites that are retrofitting their facilities to squeeze in as many Nvidia chips as possible. There’s even a site in Gansu province that was supposed to install thousands of these chips before the year-end. Spoiler alert: We’re still waiting to see if those processors actually made it there.
Now, you might be wondering, how do these projects fit into the grand scheme of U.S. export controls? Well, according to Sunny Cheung, an analyst at the Jamestown Foundation, the focus shouldn’t just be on who’s buying these chips but also on who’s actually using them and for what purpose. In other words, it’s time to look beyond the surface level and dive into the murky waters of tech utilization.
But let’s not forget about the U.S. government’s dilemma. Since 2022, they’ve been tightening the leash on Nvidia’s advanced AI processors, and they’ve even started reviewing export licenses on a case-by-case basis. But despite all this, an IDC report from October claimed that Nvidia still accounted for a whopping 34% of Chinese AI-accelerator shipments in the first half of 2026. Talk about a mixed message!
Now, with Huang’s resignation and the ongoing scrutiny surrounding Nvidia, there’s a real concern that the company’s lobbying power to ease these controls might be weakened. And let’s be honest, if you think things are complicated now, just wait until we see how these export controls evolve.
In conclusion, while the U.S. government is busy tightening the noose, Chinese demand for Nvidia chips isn’t going anywhere. The battle between regulatory oversight and market demand is heating up, and the stakes are high. So grab your popcorn, folks; this tech drama is just getting started. Who knows what twists and turns await us in the world of AI and export controls? Stay tuned!
Inspired by: “Exclusive-Huang exit and US scrutiny imperil $3 billion in Chinese AI projects reliant on Nvidia” (r/World)