Preface

Nvidia's CEO, Jensen Huang, recently celebrated the excellence of China's generative AI models, spotlighting significant technological progress despite U.S. trade restrictions. This acknowledgement follows Nvidia's plans to resume AI chip exports to China. Huang's remarks at a supply chain expo in Beijing highlight a complex intersection of innovation, collaboration, and geopolitical challenges in the tech industry.

Lazy bag

China's AI models like DeepSeek and Baidu Ernie bot are making global impacts. Nvidia anticipates resumption of H20 chip shipments after U.S. policy shifts.

Main Body

At a recent event in Beijing, Nvidia's CEO Jensen Huang delivered high praise for China's AI capabilities. He highlighted models such as DeepSeek, Alibaba's initiatives, and Baidu's Ernie bot, noting their world-class status and role in promoting worldwide AI advancements. This comes amidst news that Nvidia plans to resume the sale of its crucial AI chip, the H20, to China, following U.S. government assurances that allowed the temporary halt on sales to be lifted.

China's tech companies, spearheaded by giants like Alibaba, Tencent, and Baidu, have been rapidly developing AI models, albeit without extensive access to training chips due to international restrictions. DeepSeek notably disrupted market expectations with its cost-effective AI model in January, despite constraints imposed by U.S. chip embargoes. High-Flyer, DeepSeek’s parent company, is believed to have stockpiled Nvidia chips, facilitating their model's development.

These developments are crucial for Nvidia, as U.S. export controls had previously resulted in significant financial losses, halving its market share in China. The company reported a $2.5 billion revenue hit last quarter and anticipates another $8 billion loss. Huang has expressed concerns over potential advantages gained by companies like Huawei amidst these export restrictions.

Beyond commercial interests, Huang's commentary emphasized the importance of China’s open-source AI projects, such as Moonshot’s Kimi K2 model, asserting that these initiatives drive global AI progress and foster international cooperation. He further remarked on the centrality of AI in enhancing popular Chinese apps, from social platforms like Tencent’s WeChat to Alibaba’s Taobao.

The dynamics of U.S.-China relations remain tense as recent negotiations led to some easing of tech export restrictions to China, alongside Beijing's resumed issuance of critical export licenses. However, Huang argues for careful navigation of these tensions to prevent technological developments from being stunted. He maintains that global access to AI technology is vital for continued leadership in the field, emphasizing the potential for collaboration over conflict.

Key Insights Table

Aspect	Description
AI Model Innovation	Chinese AI models like DeepSeek and Baidu's Ernie Bot are recognized for their global impact.
U.S.-China Trade Tensions	Nvidia aims to resume chip exports after a period of trade restrictions and financial setbacks.

Last edited at：2025/7/16