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NVIDIA CEO Jensen Huang is willing to give the US government a share of this firm's next-generation chip sales to China, according to Fox Business. NVIDIA's shares are flat today after the firm's fiscal second quarter earnings yesterday failed to impress growth hungry investors. While NVIDIA beat overall revenue and EPS estimates, its data center revenue was a hairline shy, which made investors wonder whether the firm was now entering an era of tapered AI growth after posting triple digit percentage growth in the wake of the ChatGPT fueled AI boom.
NVIDIA CEO Is Confident About Being Able To Secure US Approval For Blackwell Sales To China
A key theme in NVIDIA's earnings was the firm's China sales. Earlier in the year, the Trump administration stopped the firm from selling its China-specific H20 AI GPUs, which led NVIDIA to write off billions of dollars in revenue. However, CEO Jensen Huang's charm offensive, which pointed out that banning NVIDIA could accelerate China's domestic AI chip industry, convinced the Trump administration to change tack and allow NVIDIA H20 AI GPU sales to China in August.
Yet, since NVIDIA's second quarter ends in July, revenue from these sales did not materialize in the earnings results. As part of her customary comments, NVIDIA CFO Collette Kress pointed out that there were no H20 sales to China during the second quarter.
Later, during the earnings call, NVIDIA CEO Jensen Huang reasserted the importance of making the American technology stack the global standard. Huang also commented that the opportunity to bring Blackwell to the Chinese market was a real possibility.
Blackwell is NVIDIA's latest AI GPU design architecture, and multiple rumors over the past couple of months have claimed that NVIDIA is developing a special Blackwell chip for China that meets US export control requirements.
As part of its earnings report, NVIDIA also guided $54 billion in Q3 revenue, a figure which did not factor in any China sales. These sales appear to have been a key reason behind the stock's poor performance after the earnings, as additional China sales, which would have been reflected in the data center revenue, would not only have increased the margin by which NVIDIA beat overall revenue estimates but also potentially have led to a data center revenue beat.
Not only did Huang remain optimistic about securing approval for Blackwell sales to China during the earnings call, but Huang also reiterated the opinion to Fox Business' Liz Claman. Huang confirmed to the reporter that he is in talks with the Trump administration about selling his Blackwell AI GPUs to China.
The NVIDIA CEO also added that he would be willing to give the US government a cut of the Blackwell sales as well, after the Trump administration required NVIDIA to pay a 15% cut in order to receive licenses to sell its H20 AI GPUs to China.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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