Key facts
- China is reportedly considering allowing Alibaba and ByteDance to import millions of Nvidia's RTX Pro 5500 chips.
- Nvidia CEO Jensen Huang is reportedly Trump's most influential adviser on technology issues.
- Huang has been accused of downplaying AI risks, aligning with Trump's views.
- Nvidia's share of China's advanced AI chip market reportedly fell from 95% to zero due to US export controls.
- ByteDance plans to order 1 million chips if China approves the sales, potentially securing two quarters of projected sales for Nvidia.
China is reportedly considering allowing major tech companies like Alibaba and ByteDance to import millions of Nvidia's RTX Pro 5500 chips, a move that could significantly boost Nvidia's sales in the Chinese market. This consideration comes amid ongoing, albeit tenuous, trade discussions between the US and China, with export controls on AI technology remaining a key point of contention.
Sources familiar with the matter told The Information that China's Ministry of Industry and Information Technology has inquired about Alibaba and ByteDance's plans to purchase these chips, which, despite being gaming chips, could be utilized in servers to power advanced AI models. This potential easing of restrictions could help Nvidia recover market share lost due to US export controls imposed during the Biden administration.
Nvidia CEO Jensen Huang has reportedly become a significant influence on Donald Trump's views regarding artificial intelligence. According to Stephen Witt, author of 'The Thinking Machine,' Huang is now the president's most influential adviser on technology issues, with Trump's public statements downplaying AI risks mirroring Huang's talking points. This close relationship has raised concerns among some experts and lawmakers that Nvidia's profit motives may be influencing US policy at a critical juncture in AI development.
Treasury Secretary Scott Bessent confirmed that Trump is "completely aligned" with Huang. While Nvidia has stated that lifting curbs on older gaming chips would benefit US firms unfairly burdened by restrictions, some experts fear that increased chip availability in China could divert crucial resources away from US data centers, potentially impacting the nation's lead in frontier AI development. It remains uncertain if China will approve these sales, but sources suggest an intention to allow at least some chip imports.