Nvidia’s CEO Applauds China’s AI Models Amid Renewed Chip Deal

On the heels of regulatory clarity from the U.S. government, Nvidia CEO Jensen Huang returned to China and lauded the nation’s AI advancements, especially its growing ecosystem of open-source models. The praise came just as Nvidia confirmed plans to restart exports of its H20 AI chips to China—after a pause that cost the company billions.

Speaking at the Beijing Supply Chain Innovation Expo, Huang emphasized China’s impact on global AI development, highlighting the work of companies like DeepSeek, Alibaba, Tencent, and Baidu.

Chinese Developers: A Driving Force Behind Nvidia’s Growth

“Over 1.5 million developers in China rely on Nvidia to power their ideas,” Huang noted during the opening session. He underscored how Chinese innovation has continued to flourish even under the weight of international export restrictions.

AI models like DeepSeek have surprised global investors with their rapid evolution, high efficiency, and cost competitiveness. Although chip restrictions remain, Chinese firms like High-Flyer—DeepSeek’s parent—have reportedly stockpiled Nvidia hardware in anticipation of supply chain disruptions.

H20 Chips Poised for Return: A $10 Billion Recovery?

Following months of stalled shipments, Nvidia’s H20 chip series is set to resume sales in China. Originally blocked in April 2025 under tightened U.S. export controls, the chips have been revised to comply with new regulations.

Industry analysts estimate this move could add nearly 10% to Nvidia’s quarterly earnings, with some forecasts projecting a recovery of up to $10 billion in lost revenue by the end of the fiscal year.

The Financial Blow of U.S. Chip Controls

The chip ban wasn’t without consequence. Huang had earlier stated that Nvidia lost $2.5 billion in the second quarter of 2025 alone due to blocked access to China. An additional $8 billion hit was projected for Q3, slashing potential revenue and market share.

Despite the setback, Huang remained optimistic. “Innovation finds a way,” he said, citing the rapid progress of Chinese alternatives and the global demand for Nvidia’s AI architecture.

AI Without Borders: China’s Open-Source Strategy

Huang took time to applaud China’s open-source commitment, calling it a “blueprint for inclusive AI development.” He praised projects like Moonshot AI’s Kimi K2, a coding-focused model backed by Alibaba that challenges the performance of OpenAI’s ChatGPT and Anthropic’s Claude.

Unlike U.S. counterparts, many Chinese AI firms openly share their model architectures, enabling developers worldwide to adapt, improve, and deploy AI tools across sectors.

“Open-source AI isn’t just a technical asset—it’s a diplomatic one,” Huang said. “It promotes trust, safety, and global cooperation.”

AI Everywhere: From Messaging to Delivery

Huang also highlighted how AI has seamlessly integrated into China’s consumer tech platforms:

• Tencent’s WeChat: AI-driven content filtering and chat automation
• Alibaba’s Taobao: Personalized shopping via machine learning
• Douyin (TikTok China): Real-time video recommendations
• Meituan: Smart logistics and autonomous delivery enhancements

These platforms, Huang said, are “living proof” of how AI can revolutionize daily life—not just industry.

US-China Tech Tensions Easing?

Jensen Huang’s visit to China is his third trip this year, signaling Nvidia’s commitment to maintaining a presence in the world’s second-largest economy. His tour follows recent U.S.-China trade talks in London, where both nations appeared to be softening positions on high-tech exports and rare earth trade.

Though Washington continues to monitor semiconductor sales closely, the U.S. has reportedly loosened restrictions on select AI chip models, allowing companies like Nvidia to re-engage with Chinese partners—under strict compliance.

Looking Ahead: AI as a Bridge, Not a Battlefield

As the AI arms race accelerates, Huang’s remarks mark a turning point. Instead of viewing China’s progress as competition, he urged the global tech community to embrace collaboration, transparency, and knowledge-sharing.

In his closing comments, Huang said:

“AI is not a zero-sum game. When one country wins, we all benefit. Shared innovation is the future.”