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Nvidia chips being smuggled to China? Jensen Huang says no proof of diversion

He also showed confidence in his trading partners dealing in the prized semiconductors and said that all customers follow rules and are monitoring their ecosystems all the time.

May 17, 2025 / 16:55 IST
Nvidia, Nvidia chips, Nvidia AI Chips, AI industry, China, China news, Jensen Huang

Nvidia CEO Jensen Huang

Days after AI start-up Deepseek released a new paper offering insights into how it built the revolutionising AI system using 2,048 Nvidia chips, Nvidia's Jensen Huang has brushed aside reports of the company’s powerful AI chips being smuggled to China.

Talking to Bloomberg, Huang said that it was not practically possible to divert the trade to China due to its massive size. Talking about the Grace Blackwell system, the Nvidia boss said that it weighs two tonnes and can’t be just put in a pocket and traded around.

He also showed confidence in his trading partners dealing in the prized semiconductors and said that all customers follow rules and are monitoring their ecosystems all the time.

Meanwhile, another report by CNBC said that the AI major has decided not to send its GPU designs to China. The denial came after a report surfaced saying that Nvidia is working on a research centre in Shanghai.

Huang has been very vocal about how significant the Chinese market is. In an interview last month at the peak of the trade war, the Nvidia CEO had said that not getting access to the world’s second biggest economy was a massive loss. He had also said that the Chinese AI market was poised to hit $50 billion in the next three years.

first published: May 17, 2025 04:53 pm

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