Huang exit and US scrutiny imperil $3 billion in Chinese AI projects reliant on Nvidia

Detailed summary

BEIJING, Nov 13 (Reuters) - Nvidia has said US export controls have effectively shut it out of China's AI data-centre market, but a Reuters review has identified more than $3…

BEIJING, Nov 13 (Reuters) - Nvidia has said US export controls have effectively shut it out of China's AI data-centre market, but a Reuters review has identified more than $3 billion in Chinese computing projects built around the American chipmaker's restricted processors.

The projects, stretching from China's wealthy coastal technology hubs to remote western provinces, reveal the scale of continuing demand for Nvidia hardware even as Washington seeks to curb Beijing's access to the technology powering the global artificial-intelligence boom.

The Reuters review examined more than 150 Chinese procurement notices, investment plans, construction contracts and corporate disclosures, identifying projects and equipment agreements with a combined reported value exceeding 23 billion yuan ($3.2 billion).

The findings paint a detailed picture of how deeply Nvidia technology remains embedded in China's AI expansion. They reveal the company's technology reaches well beyond China's largest tech firms, into local government-backed ventures, universities and regional computing centres.

The estimate includes planned investments and signed contracts as well as completed installations. It covers buildings, power systems and other infrastructure, and does not reflect spending on Nvidia chips alone.

China's commerce ministry and Nvidia did not immedietely respond to Reuters request for comment.

The findings come a day after Nvidia co-founder Jensen Huang resigned as chief executive amid a scandal over his relationship with a Chinese businesswoman suspected by US authorities of intelligence ties to Beijing.

Huang, a vocal advocate of easing export restrictions, said last year Nvidia's market share in China had fallen from 95% to zero. The company has also excluded China data-centre computing revenue from its forecasts, citing regulatory uncertainty.

That does not mean Chinese demand has disappeared. While Nvidia's statements address its own ability to compete and sell directly in China, the…

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