Nvidia Faces $1 Billion Black Market as AI Chips Flow Illegally Into China Despite Export Restrictions
Summary
Nvidia confronts a $1 billion black market as Chinese distributors illegally sell prohibited AI chips including B200 models to bypass Trump-era export restrictions, while CEO Jensen Huang announces breakthrough agreement allowing resumed H20 chip sales to China.
Key Points
- Nvidia responds to reports that at least $1 billion worth of its AI chips illegally entered China despite Trump administration restrictions, calling bootleg data centers a 'losing proposition'
- Chinese distributors begin selling prohibited B200 chips and other Nvidia products on the black market to AI companies and data center suppliers since May
- Nvidia CEO Jensen Huang announces the company will soon resume selling H20 chips to China after reaching a breakthrough agreement with the Trump administration on export regulations