U.S. won't permit Nvidia to sell scaled-down AI chip to China - report

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The U.S. government has informed federal agencies that it will not permit Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) to sell its latest scaled-down AI chip to China, _The Information _reported, citing people familiar with the matter.

The company provided samples of the B30A chip, which was developed for China, to several of its Chinese customers.

But Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) is working on modifying the chip's design, hoping that the U.S. government will reconsider its stance, two employees told [https://www.theinformation.com/articles/u-s-block-nvidias-sale-scaled-back-ai-chips-china] _The Information_.

The B30A chip is based on Nvidia's (NVDA [https://seekingalpha.com/symbol/NVDA]) Blackwell architecture and is said to be more powerful than the H20 model, _Reuters _reported [https://www.reuters.com/world/china/nvidia-working-new-ai-chip-china-that-outperforms-h20-sources-say-2025-08-19/] in August.

According to an Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) spokesperson, the company has "zero share in China's highly competitive market for data center compute" and does not include it in its guidance. That compares to a 95% share back in 2022.

China has been discouraging local companies from buying Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) chips, and is instead promoting domestic AI chipmakers like Huawei. Beijing recently issued [https://seekingalpha.com/news/4515432-chinese-government-bans-use-of-foreign-ai-chips-in-state-funded-data-centers] guidance requiring new data center projects that received state funds to only use Chinese-made AI chips.

Meanwhile, Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) CEO Jensen Huang said there were "no active discussions" on selling its advanced Blackwell chips to China.

"Currently, we are not planning to ship anything to China," he said on a live broadcast by Taiwan's _Formosa TV News_. "It's up to China when they would like Nvidia products to go back to serve the Chinese market, I look forward to them changing their policy."

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