Nvidia still hasn't sold its U.S.-approved China AI chips — and it's worried local AI rivals could take over

Core Viewpoint - Nvidia has not yet recovered its sales in China despite some easing of U.S. restrictions, and the company is concerned about increasing competition from Chinese rivals [1][2]. Group 1: Sales and Revenue - Nvidia's CFO stated that while small amounts of H200 semiconductor products were approved for China, the company has not generated any revenue from these sales [1]. - China previously accounted for at least 20% of Nvidia's data center revenue [2]. - Sales have stalled due to security scrutiny in both the U.S. and China, despite efforts from Nvidia's CEO to lobby for better conditions [5]. Group 2: Competition and Market Dynamics - Rising competition from Chinese companies is a significant concern for Nvidia, as these competitors are making progress and could disrupt the global AI industry in the long term [6]. - Recent IPOs of Chinese AI chipmakers and language model developers have led to increased expectations that they could serve as alternatives to U.S. technology, resulting in stock surges for companies like MiniMax and Moore Threads [7]. - Although Chinese AI companies are slightly behind the U.S. in capabilities, their products are generally much cheaper [8]. Group 3: Future Outlook - Analysts suggest that there could be a scenario where a majority of the global population relies on a Chinese tech stack within the next five to ten years [9].