Nvidia’s Advanced Blackwell Processor Could Enter China, Boosting AI Market by 50%, Says CEO Jensen Huang
NVIDIA’s CEO, Jensen Huang, expressed optimism about the potential for the company to introduce its cutting-edge Blackwell processor in the Chinese market. He emphasized the need for the U.S. government to facilitate access for American chipmakers in China.
Huang forecasted a 50% growth in the artificial intelligence market within China’s economy next year. During a call discussing NVIDIA’s latest quarterly results, he stated, “The prospect of bringing Blackwell to the Chinese market is a genuine opportunity that we are actively pursuing.”
In July and August, Huang visited the White House to secure export licenses for NVIDIA’s current-generation AI chip, known as the H20. In August, it was announced that President Trump and Huang had reached an agreement whereby NVIDIA would receive export licenses in return for 15% of China sales of the H20 being directed to the U.S. government.
Trump hinted at potential negotiations for Blackwell chips, which represent the majority of NVIDIA’s data center revenue and represent its latest AI technology. Huang stated that enabling Chinese AI developers to use NVIDIA’s chips would encourage the Chinese tech industry to advance more rapidly, rather than forcing them to rely on domestic alternatives.
Should NVIDIA launch a Blackwell chip in China, it could generate significant sales due to the preference for powerful chips among Chinese AI developers. However, modifications would be necessary to comply with U.S. export regulations, slowing down certain aspects of the Blackwell chips sold in the U.S. market.
Trump commented in August that he was hesitant about a deal involving the advanced Blackwell chips but was open to negotiating for a “somewhat less powerful” version.
NVIDIA reported a 56% year-over-year revenue growth of $54 billion for its second quarter, despite not selling any H20 chips to Chinese customers during that period. The company released $180 million in H20 inventory to an overseas customer, which accounted for $650 million in sales.
NVIDIA does not anticipate any H20 sales contributing to its forecast of $54 billion in revenue for the October quarter. However, it could sell between $2 billion and $5 billion worth of H20 chips depending on geopolitical circumstances. NVIDIA’s finance chief, Colette Kress, stated, “If we receive more orders, we can produce more.”
NVIDIA has received some licenses following the meeting with Trump, but the U.S. government has yet to publish official regulations outlining how its share of sales will be implemented. Kress clarified, “USG officials have expressed an expectation that the USG will receive 15% of the revenue generated from licensed H20 sales, but to date, the USG has not published a regulation codifying such requirement.”
Huang told analysts that China represents a $50 billion opportunity for NVIDIA in AI this year, with potential annual growth rates of approximately 50%. He also acknowledged recent reports suggesting that the Chinese government is encouraging AI developers to favor domestic chips over those from NVIDIA. Kress added, “We are still waiting on several geopolitical issues to be resolved between the governments and companies determining their purchasing decisions.”