Nvidia Clarifies: No GPU Designs Sent to China Despite New Shanghai R&D Center Plans

Nvidia has clarified that it will not be sending its graphics processing unit (GPU) designs to China despite reports of a new research and development center planned in Shanghai. In a statement to CNBC, a Nvidia spokesperson confirmed, "We are not sending any GPU designs to China to be modified to comply with export controls." The Financial Times first reported the news, citing two sources familiar with the matter. According to the report, Nvidia's CEO, Jensen Huang, discussed the potential new center with Shanghai's mayor, Gong Zheng, during a visit last month. The center will focus on assessing methods to comply with U.S. export restrictions while serving the Chinese market, but both production and design will remain outside China. AI chipmakers like Nvidia have faced significant challenges in China since 2022 due to tightened U.S. export controls aimed at preventing the use of advanced chips in military applications. Last week, the Trump administration announced that it would replace the restrictions implemented under President Joe Biden with a "simpler rule" designed to foster American innovation while ensuring AI supremacy. Nvidia recently disclosed a $5.5 billion financial charge related to sales of its H20 GPUs in China and other countries. The company's CFO, Colette Kress, explained that the charge reflects the impact of these export restrictions and the resulting reduced sales in the region. China is a crucial market for Nvidia, ranking alongside the U.S., Singapore, and Taiwan in importance. Huang recently acknowledged the scale of the potential loss if Nvidia were excluded from the world's second-largest economy. He estimated that China's AI market could reach $50 billion within the next two to three years. During an interview with CNBC's Jon Fortt, alongside ServiceNow CEO Bill McDermott, Huang emphasized the need for adaptability, stating, "We just have to stay agile. Whatever the policies are, whatever is in the best interest of our country, we'll support them." The establishment of the Shanghai R&D center underscores Nvidia's commitment to navigating the complex regulatory landscape and continuing to serve its Chinese customers. Huang has reiterated his support for government policies, even as the company faces financial and operational hurdles in the region. For further details, you can read the full Financial Times report here: Nvidia plans Shanghai research centre in new commitment to China.