AI processors like the NVIDIA B200 utilise 208 billion transistors and specialised Tensor Cores to perform matrix multiplication. Featuring high-bandwidth memory and FP4 precision, a single chip can execute 9 quadrillion calculations per second.

'One chip, trillions of calculations': How AI processors work

DeepSeek founder Liang Wenfeng has laid out an unusually ambitious vision for the Chinese AI company: focus on artificial general intelligence (AGI), keep commercialisation secondary and help build an AI ecosystem less dependent on Nvidia. His remarks emerged from a lengthy discussion with investors and offer a rare look at how the normally low-profile entrepreneur thinks about the global AI race. While companies across the industry are spending heavily to turn AI into profitable products, Liang said DeepSeek's main objective remains AGI broadly referring to AI capable of performing intellectual tasks across many areas at or beyond human level.<h2>DeepSeek wants the 'watermelon', not the 'sesame seeds'</h2>Liang compared near-term revenue opportunities with “sesame seeds”, suggesting DeepSeek will pick some up without allowing them to distract the company from a much bigger prize. “Our goal should be AGI,” he said. The philosophy does not mean DeepSeek will ignore commercial opportunities. Rather, Liang argues that building more advanced intelligence should take priority over maximising revenue from today's products. He described AI development as a staircase. Language models provide the foundation for reasoning, reasoning enables more capable agents, and future systems could eventually learn and improve continuously. If an AI system can help develop its own successor, Liang believes progress could accelerate dramatically.<h2>Why Liang thinks Nvidia is 'digging its own grave'</h2>Perhaps his most provocative remarks concerned Nvidia. US restrictions have limited Chinese companies' access to some of Nvidia's most advanced AI hardware. But Liang argues that those restrictions are creating a powerful incentive for China to develop alternatives. “If Nvidia cards can't be bought, everyone is forced into it everyone has to do domestic chips,” he said. Liang went further, saying he believes “Nvidia is digging its own grave” by creating conditions that encourage Chinese companies to reduce their dependence on its hardware. DeepSeek is working closely with Huawei and expects to participate deeply in its AI computing ecosystem.<h2>Can Huawei really replace Nvidia?</h2>Liang's comments should not be mistaken for a claim that China has already eliminated Nvidia's technological advantage. He acknowledged a substantial efficiency gap, saying roughly four Huawei chips may be needed for the work of one comparable Nvidia chip, while China's hardware remains about two years behind. His broader argument is about direction rather than today's outright performance. DeepSeek has already demonstrated an interest in designing its software around hardware limitations. Its researchers have previously detailed how DeepSeek-V3 was trained using 2,048 Nvidia H800 GPUs while relying on several hardware-aware efficiency techniques. Liang believes the same pressure could ultimately produce a broader Chinese AI ecosystem built around domestic chips, open models and lower prices. That would turn Washington's restrictions into something of a long-term gamble: limiting China's access to America's best AI hardware today could also give Chinese companies a powerful reason to make sure they need less of it tomorrow.

DeepSeek founder Liang Wenfeng says AGI, not short-term profit, remains the company's main goal. He also argues that US restrictions on Nvidia chips are accelerating China's push towards domestic AI hardware, with DeepSeek working closely with Huawei.


DeepSeek founder Liang Wenfeng has laid out an unusually ambitious vision for the Chinese AI company: focus on artificial general intelligence (AGI), keep commercialisation secondary and help build an AI ecosystem less dependent on Nvidia. His remarks emerged from a lengthy discussion with investors and offer a rare look at how the normally low-profile entrepreneur thinks about the global AI race. While companies across the industry are spending heavily to turn AI into profitable products, Liang said DeepSeek's main objective remains AGI broadly referring to AI capable of performing intellectual tasks across many areas at or beyond human level. DeepSeek wants the 'watermelon', not the 'sesame seeds' Liang compared near-term revenue opportunities with “sesame seeds”, suggesting DeepSeek will pick some up without allowing them to distract the company from a much bigger prize. “Our goal should be AGI,” he said. The philosophy does not mean DeepSeek will ignore commercial opportunities. Rather, Liang argues that building more advanced intelligence should take priority over maximising revenue from today's products. He described AI development as a staircase. Language models provide the foundation for reasoning, reasoning enables more capable agents, and future systems could eventually learn and improve continuously. If an AI system can help develop its own successor, Liang believes progress could accelerate dramatically. Why Liang thinks Nvidia is 'digging its own grave' Perhaps his most provocative remarks concerned Nvidia. US restrictions have limited Chinese companies' access to some of Nvidia's most advanced AI hardware. But Liang argues that those restrictions are creating a powerful incentive for China to develop alternatives. “If Nvidia cards can't be bought, everyone is forced into it everyone has to do domestic chips,” he said. Liang went further, saying he believes “Nvidia is digging its own grave” by creating conditions that encourage Chinese companies to reduce their dependence on its hardware. DeepSeek is working closely with Huawei and expects to participate deeply in its AI computing ecosystem. Can Huawei really replace Nvidia? Liang's comments should not be mistaken for a claim that China has already eliminated Nvidia's technological advantage. He acknowledged a substantial efficiency gap, saying roughly four Huawei chips may be needed for the work of one comparable Nvidia chip, while China's hardware remains about two years behind. His broader argument is about direction rather than today's outright performance. DeepSeek has already demonstrated an interest in designing its software around hardware limitations. Its researchers have previously detailed how DeepSeek-V3 was trained using 2,048 Nvidia H800 GPUs while relying on several hardware-aware efficiency techniques. Liang believes the same pressure could ultimately produce a broader Chinese AI ecosystem built around domestic chips, open models and lower prices. That would turn Washington's restrictions into something of a long-term gamble: limiting China's access to America's best AI hardware today could also give Chinese companies a powerful reason to make sure they need less of it tomorrow.

DeepSeek founder Liang Wenfeng says AGI, not short-term profit, remains the company's main goal. He also argues that US restrictions on Nvidia chips are accelerating China's push towards domestic AI hardware, with DeepSeek working closely with Huawei.

'Nvidia is digging its own grave': DeepSeek CEO backs China's AI chip push

Nvidia on Monday (Jun 1) unveiled a powerful laptop chip for Windows laptops, entering the market for AI-powered PC that is dominated by established players such as Intel, AMD and Qualcomm. The move marks Nvidia’s most significant push into personal computing in more than a decade and comes as the company seeks to extend its dominance beyond data centres and into devices.According to analysts, Nvidia’s entry into the personal computer processor market puts it in direct competition with industry heavyweights such as Apple, Intel and AMD. However, they expect the AI-focused devices to launch at premium price points. Although the company also plans to introduce more affordable versions of the technology in the future.The move also reflects Nvidia's broader strategy to expand beyond its dominant data centre business and strengthen its presence in the consumer technology market. The company, which has emerged as the world’s most valuable firm amid the artificial intelligence boom, continues to benefit from surging demand for its AI chips from major global technology companies.Speaking at the Computex technology exhibition, Nvidia CEO Jensen Huang described the new RTX Spark Superchip as a transformative step for personal computing.“Microsoft and Nvidia are going to reinvent the PC. This is going to be the new PC,” Huang said during the launch event.Highlighting the system’s capabilities, Huang said the platform would be powerful enough to handle a wide range of demanding workloads, from digital biology and seismic analysis to astrophysics research.“If you want to run digital biology, no problem. If you want to do seismic processing, no problem. You want astrophysics, no problem,” Huang said.He added that years of collaboration between Microsoft and Nvidia had resulted in a platform capable of running virtually all existing software while also supporting advanced AI agents and next-generation artificial intelligence applications.“Microsoft and Nvidia meticulously optimised everything so that this computer literally runs everything the world has ever created, while also enabling powerful AI agents,” Huang said, calling it “an incredible computer.”

Nvidia unveils AI-powered laptop chip for Windows PCs, challenging Intel, AMD and Qualcomm, as CEO Jensen Huang calls it the “new PC” revolution.

Nvidia on Monday (Jun 1) unveiled a powerful laptop chip for Windows laptops, entering the market for AI-powered PC that is dominated by established players such as Intel, AMD and Qualcomm. The move marks Nvidia’s most significant push into personal computing in more than a decade and comes as the company seeks to extend its dominance beyond data centres and into devices. According to analysts, Nvidia’s entry into the personal computer processor market puts it in direct competition with industry heavyweights such as Apple, Intel and AMD. However, they expect the AI-focused devices to launch at premium price points. Although the company also plans to introduce more affordable versions of the technology in the future. The move also reflects Nvidia's broader strategy to expand beyond its dominant data centre business and strengthen its presence in the consumer technology market. The company, which has emerged as the world’s most valuable firm amid the artificial intelligence boom, continues to benefit from surging demand for its AI chips from major global technology companies. Speaking at the Computex technology exhibition, Nvidia CEO Jensen Huang described the new RTX Spark Superchip as a transformative step for personal computing. “Microsoft and Nvidia are going to reinvent the PC. This is going to be the new PC,” Huang said during the launch event. Highlighting the system’s capabilities, Huang said the platform would be powerful enough to handle a wide range of demanding workloads, from digital biology and seismic analysis to astrophysics research. “If you want to run digital biology, no problem. If you want to do seismic processing, no problem. You want astrophysics, no problem,” Huang said. He added that years of collaboration between Microsoft and Nvidia had resulted in a platform capable of running virtually all existing software while also supporting advanced AI agents and next-generation artificial intelligence applications. “Microsoft and Nvidia meticulously optimised everything so that this computer literally runs everything the world has ever created, while also enabling powerful AI agents,” Huang said, calling it “an incredible computer.”

Nvidia unveils AI-powered laptop chip for Windows PCs, challenging Intel, AMD and Qualcomm, as CEO Jensen Huang calls it the “new PC” revolution.

‘Reinventing PC’: Nvidia unveils new chip for Windows laptops, challenging Intel, AMD

US President Donald Trump is in Beijing for a 3-day state visit. He is accompanied by some of the tech and AI industry and financial titans, approximately 17 prominent chief executives and Wall Street financial leaders. US media termed it “a roster of candidates for Mar-a-Lago membership” instead of a diplomatic mission. "I will be asking President Xi, a Leader of extraordinary distinction, to 'open up' China so that these brilliant people can work their magic, and help bring the People's Republic to an even higher level," wrote US President Donald Trump.<h2>Who are the big giants in Trump's entourage?</h2>The roster includes SpaceXAI CEO Elon Musk, BlackRock CEO Larry Fink, Apple CEO Tim Cook, NVIDIA CEO Jensen Huang, Kelly Ortberg Kelly President and Chief Executive of Boeing, Larry Culp Chief Executive of GE Aerospace, Cristiano Amon Chief Executive of Qualcomm, Sanjay Mehrotra Chief Executive of Micron, Stephen Schwarzman Chief Executive of Blackstone, David Solomon Chief Executive of Goldman Sachs, Jane Fraser Chief Executive of Citigroup (Citi), Ryan McInerney Chief Executive of Visa.Also Read: <a href="https://www.wionews.com/world/trump-refuses-answer-taiwan-questions-xi-jinping-beijing-summit-1778738689005">Trump dodges Taiwan questions following two-hour summit with Xi Jinping</a><h2>Why are there so many CEOs in Trump's entourage?</h2>The most honest extrapolation from the situation, after looking at the ballooning US debts of $39 trillion, is that Wall Street wants to access the Chinese household savings, China's enormous pool of capital, consumers, data-driven growth and AI sectors. China's household savings rate is over 35 per cent, which amounts to 2.44 trillion RMB in March 2026, outpacing all the major global economies like Germany at around 19 per cent, the European average at around 14 per cent, and the US and the UK hovering close to 3 per cent.&nbsp;Wall Street and US markets want continued access to Global capital, as AI has intensified the global capital allocation, and China represents one of the largest untapped pools of savings. This huge financial strength is required to fill the trillion-dollar gap created by the massive speculative investment by top executives in AI, betting it would become profitable in future. US asset managers like BlackRock and Goldman Sachs have long pushed for deeper access to China's retail and institutional investors. Most of these tech and financial giants face regulations, heavy tariffs and manufacturing disruptions. BlackRock, Goldman, Citi want access to Chinese retail and institutional investors; NVIDIA, Qualcomm, Micron want chip sales into China's AI infrastructure buildout, despite export controls; Apple, Boeing, GE &nbsp;Aerospace want supply chain normalisation and market access; Citi, Visa want payment infrastructure penetration into China's consumer economy. They want uncontrolled access to the “second largest economy” in the world. Analysts, after looking at Trump's entourage, frame it as a business pitch meeting rather than a diplomatic mission.&nbsp;

US President Donald Trump arrived in Beijing with top CEOs from Apple, NVIDIA, BlackRock, Goldman Sachs and Boeing. Analysts say the visit reflects Wall Street and AI industry efforts to access China’s capital, consumers and AI market.

US President Donald Trump is in Beijing for a 3-day state visit. He is accompanied by some of the tech and AI industry and financial titans, approximately 17 prominent chief executives and Wall Street financial leaders. US media termed it “a roster of candidates for Mar-a-Lago membership” instead of a diplomatic mission. "I will be asking President Xi, a Leader of extraordinary distinction, to 'open up' China so that these brilliant people can work their magic, and help bring the People's Republic to an even higher level," wrote US President Donald Trump. Who are the big giants in Trump's entourage? The roster includes SpaceXAI CEO Elon Musk, BlackRock CEO Larry Fink, Apple CEO Tim Cook, NVIDIA CEO Jensen Huang, Kelly Ortberg Kelly President and Chief Executive of Boeing, Larry Culp Chief Executive of GE Aerospace, Cristiano Amon Chief Executive of Qualcomm, Sanjay Mehrotra Chief Executive of Micron, Stephen Schwarzman Chief Executive of Blackstone, David Solomon Chief Executive of Goldman Sachs, Jane Fraser Chief Executive of Citigroup (Citi), Ryan McInerney Chief Executive of Visa. Also Read: Trump dodges Taiwan questions following two-hour summit with Xi Jinping Why are there so many CEOs in Trump's entourage? The most honest extrapolation from the situation, after looking at the ballooning US debts of $39 trillion, is that Wall Street wants to access the Chinese household savings, China's enormous pool of capital, consumers, data-driven growth and AI sectors. China's household savings rate is over 35 per cent, which amounts to 2.44 trillion RMB in March 2026, outpacing all the major global economies like Germany at around 19 per cent, the European average at around 14 per cent, and the US and the UK hovering close to 3 per cent. Wall Street and US markets want continued access to Global capital, as AI has intensified the global capital allocation, and China represents one of the largest untapped pools of savings. This huge financial strength is required to fill the trillion-dollar gap created by the massive speculative investment by top executives in AI, betting it would become profitable in future. US asset managers like BlackRock and Goldman Sachs have long pushed for deeper access to China's retail and institutional investors. Most of these tech and financial giants face regulations, heavy tariffs and manufacturing disruptions. BlackRock, Goldman, Citi want access to Chinese retail and institutional investors; NVIDIA, Qualcomm, Micron want chip sales into China's AI infrastructure buildout, despite export controls; Apple, Boeing, GE Aerospace want supply chain normalisation and market access; Citi, Visa want payment infrastructure penetration into China's consumer economy. They want uncontrolled access to the “second largest economy” in the world. Analysts, after looking at Trump's entourage, frame it as a business pitch meeting rather than a diplomatic mission.

US President Donald Trump arrived in Beijing with top CEOs from Apple, NVIDIA, BlackRock, Goldman Sachs and Boeing. Analysts say the visit reflects Wall Street and AI industry efforts to access China’s capital, consumers and AI market.

From NVIDIA to Goldman Sachs: Why America’s top CEOs are with Trump in China

US President Donald Trump on Monday (Dec 8) announced that he will allow US chip giant Nvidia to ship its advanced artificial intelligence H200 chips to “approved customers” in China and other nations. The move comes after the company’s CEO, Jensen Huang, met with the US president last week. Trump said that he had informed Chinese President Xi Jinping about the decision, adding that he “responded positively”.“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump wrote in a post on his Truth Social platform.“President Xi responded positively!” Trump said. He added that a 25 per cent fee on sales will be paid to the US. He said that the policy will support American jobs, strengthen domestic manufacturing and benefit American taxpayers.The move marks a significant shift in the US policy for advanced AI chip exports. Former president Joe Biden’s administration had restricted the sale of chips to China over national security concerns regarding Beijing’s military applications.Slamming his predecessor’s administration, Trump added, “The Biden Administration forced our Great Companies to spend BILLIONS OF DOLLARS building ‘degraded’ products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker. That Era is OVER!”Trump further added that the Department of Commerce is finalising the details, and the same will be applied to other US tech giants like AMD and Intel.“We will protect National Security, create American Jobs, and keep America’s lead in AI. NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST. The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies. MAKE AMERICA GREAT AGAIN!” he wrote.<h2>‘Thoughtful balance’</h2>Hailing Trump’s approval, an Nvidia spokesperson told AFP, “We applaud President Trump’s decision to allow America's chip industry to compete to support high paying jobs and manufacturing in America.”“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”

Former president Joe Biden’s administration had restricted the sale of chips to China over national security concerns regarding Beijing’s military applications.

US President Donald Trump on Monday (Dec 8) announced that he will allow US chip giant Nvidia to ship its advanced artificial intelligence H200 chips to “approved customers” in China and other nations. The move comes after the company’s CEO, Jensen Huang, met with the US president last week. Trump said that he had informed Chinese President Xi Jinping about the decision, adding that he “responded positively”. “I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump wrote in a post on his Truth Social platform. “President Xi responded positively!” Trump said. He added that a 25 per cent fee on sales will be paid to the US. He said that the policy will support American jobs, strengthen domestic manufacturing and benefit American taxpayers. The move marks a significant shift in the US policy for advanced AI chip exports. Former president Joe Biden’s administration had restricted the sale of chips to China over national security concerns regarding Beijing’s military applications. Slamming his predecessor’s administration, Trump added, “The Biden Administration forced our Great Companies to spend BILLIONS OF DOLLARS building ‘degraded’ products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker. That Era is OVER!” Trump further added that the Department of Commerce is finalising the details, and the same will be applied to other US tech giants like AMD and Intel. “We will protect National Security, create American Jobs, and keep America’s lead in AI. NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST. The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies. MAKE AMERICA GREAT AGAIN!” he wrote. ‘Thoughtful balance’ Hailing Trump’s approval, an Nvidia spokesperson told AFP, “We applaud President Trump’s decision to allow America's chip industry to compete to support high paying jobs and manufacturing in America.” “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”

Former president Joe Biden’s administration had restricted the sale of chips to China over national security concerns regarding Beijing’s military applications.

AI chip war U-turn? Trump allows Nvidia H200 sales to China, says Xi Jinping ‘responded positively’

Nvidia has become the first company in history to reach a market value of USD 5 trillion, riding on the artificial intelligence boom that is reshaping technology, businesses, and markets across the globe. Nvidia shares opened up more than 3% on Wednesday, and its market value is now more than the GDP of every country on earth, except for the US and China, according to World Bank data. The stock has gained more than 50% this year and more than 1,500% over the last five years. Nvidia’s sharp rise highlights its transformation from a graphics-chip designer into the backbone of the booming AI industry. The steep rise has turned CEO Jensen Huang into one of Silicon Valley’s most influential figures and the company is now at the centre of the US-China tech rivalry.&nbsp;Since 2022—the year of ChatGPT launch—Nvidia’s shares have surged 12 times as the AI frenzy pushed the S&amp;P 500 to record highs, sparking both fear and debate over whether soaring tech valuations could trigger another market bubble.The firm reached the $5 trillion market capitalisation just three months after crossing $4 trillion. Moreover, the new valuation surpasses the total worth of the global cryptocurrency market and now equals nearly half of Europe’s benchmark Stoxx 600 index.&nbsp;Also Read: <a href="https://www.wionews.com/world/-will-push-them-back-into-caves-tails-between-their-legs-pak-minister-says-will-obliterate-afghan-taliban-1761741971619">Will push them back into caves…tails between their legs’: Pak minister says will ‘obliterate’ Afghan Taliban</a><h2>Rise follows record orders and supercomputing plans</h2>&nbsp;The Santa Clara-based company’s shares rose 3.5% after a series of announcements reinforced its leadership in the AI race. On Tuesday, Nvidia President and CEO Jensen Huang unveiled AI chip orders worth $500 billion and announced plans to build seven supercomputers for the US government.&nbsp;At current prices, Huang’s stake in Nvidia is worth about USD 177.3 billion, making him the world’s eighth-richest person, according to Forbes.&nbsp;Also Read: <a href="https://www.wionews.com/world/pak-defence-minister-khawaja-asif-admits-country-s-past-role-in-supporting-afghanistan-taliban-1761755033225">Pak Defence Minister Khawaja Asif admits country’s past role in supporting Afghanistan Taliban</a>&nbsp;Taiwan-born Huang, who was raised in the US from the age of nine, founded Nvidia in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the core engines behind large-language models such as ChatGPT and Elon Musk’s xAI.The rally reflects investor confidence in sustained AI spending, though some warn that valuations may be running hot.Nvidia’s performance has a sweeping influence across global markets now.&nbsp;&nbsp;Moreover, US President Donald Trump is likely to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday since the sale of the high-end chip has been a sticking point in ongoing tensions between the two countries, particularly amid Washington’s export controls on advanced semiconductors.

The Santa Clara-based company is at the centre of the global AI boom, and its market capitalisation as on Wednesday now exceeds the total valuation of the cryptocurrency market and is roughly half the size of Europe’s Stoxx 600 index.

Nvidia has become the first company in history to reach a market value of USD 5 trillion, riding on the artificial intelligence boom that is reshaping technology, businesses, and markets across the globe. Nvidia shares opened up more than 3% on Wednesday, and its market value is now more than the GDP of every country on earth, except for the US and China, according to World Bank data. The stock has gained more than 50% this year and more than 1,500% over the last five years. Nvidia’s sharp rise highlights its transformation from a graphics-chip designer into the backbone of the booming AI industry. The steep rise has turned CEO Jensen Huang into one of Silicon Valley’s most influential figures and the company is now at the centre of the US-China tech rivalry. Since 2022—the year of ChatGPT launch—Nvidia’s shares have surged 12 times as the AI frenzy pushed the S&P 500 to record highs, sparking both fear and debate over whether soaring tech valuations could trigger another market bubble. The firm reached the $5 trillion market capitalisation just three months after crossing $4 trillion. Moreover, the new valuation surpasses the total worth of the global cryptocurrency market and now equals nearly half of Europe’s benchmark Stoxx 600 index. Also Read: Will push them back into caves…tails between their legs’: Pak minister says will ‘obliterate’ Afghan Taliban Rise follows record orders and supercomputing plans The Santa Clara-based company’s shares rose 3.5% after a series of announcements reinforced its leadership in the AI race. On Tuesday, Nvidia President and CEO Jensen Huang unveiled AI chip orders worth $500 billion and announced plans to build seven supercomputers for the US government. At current prices, Huang’s stake in Nvidia is worth about USD 177.3 billion, making him the world’s eighth-richest person, according to Forbes. Also Read: Pak Defence Minister Khawaja Asif admits country’s past role in supporting Afghanistan Taliban Taiwan-born Huang, who was raised in the US from the age of nine, founded Nvidia in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the core engines behind large-language models such as ChatGPT and Elon Musk’s xAI. The rally reflects investor confidence in sustained AI spending, though some warn that valuations may be running hot. Nvidia’s performance has a sweeping influence across global markets now. Moreover, US President Donald Trump is likely to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday since the sale of the high-end chip has been a sticking point in ongoing tensions between the two countries, particularly amid Washington’s export controls on advanced semiconductors.

The Santa Clara-based company is at the centre of the global AI boom, and its market capitalisation now exceeds the total valuation of the cryptocurrency market and is roughly half the size of Europe’s Stoxx 600 index.

Riding on AI boom, Nvidia scripts history, becomes first firm to reach $5 trillion market value

Global chip giant&nbsp;Nvidia has hit a major milestone. According to the MSCI All Country World Index, the US-based company has overtaken Japan, one of the world's largest economies in the world, as far as market weight is concerned. According to The Kobeissi Letter, Nvidia now represents 5.04 per cent of the MSCI All Country World Index. The index captures 85 per cent of global equity markets, including large and mid-cap stocks.&nbsp;The company's weight has now surpassed&nbsp;Japan's share, which is the world's third-largest stock market. Japan's share weight is 4.78 per cent. China, the UK, and Canada account for 3.33 per cent, 3.23 per cent, and 2.92 per cent.&nbsp;The company's contribution to the index is larger than the combined contribution of both France and Germany.&nbsp;The company used to weigh 3 per cent on the index in 2023. However, with the advent of artificial intelligence and NVIDIA's promise of providing chips to spearhead the AI revolution, the company's weight increased to 5 per cent.<h2>Why has Nvidia become a leading player</h2>Nvidia is the world leader in developing high-performance chips that power artificial intelligence adoption.&nbsp;The company has been posting record revenues from AI infrastructure.&nbsp;Nvidia used to make graphics cards that drove graphics-intensive&nbsp;tasks, including games, on computers and laptops. These are processors that are now key to building the technology behind ChatGPT.&nbsp;Nvidia designs these chips and also offers an entire infrastructure capable of making them work together.&nbsp;Nvidia's market share in this key sector is 80 per cent. America's AMD is the distant second competitor.&nbsp;AMD makes CPUs for personal and business computers.&nbsp;Several cloud provider companies have been working on their own chips to reduce dependence on Nvidia, including Google and Amazon.&nbsp;In China, Huawei ranks among Nvidia's most credible competitors.&nbsp;However, Nvidia continues to remain strong and underpins the vast majority of AI applications today.

Global chip giant Nvidia has hit a major milestone. According to the MSCI All Country World Index, the US-based company has overtaken Japan, one of the world's largest economies in the world, as far as market weight is concerned. 

Global chip giant Nvidia has hit a major milestone. According to the MSCI All Country World Index, the US-based company has overtaken Japan, one of the world's largest economies in the world, as far as market weight is concerned. According to The Kobeissi Letter, Nvidia now represents 5.04 per cent of the MSCI All Country World Index. The index captures 85 per cent of global equity markets, including large and mid-cap stocks. The company's weight has now surpassed Japan's share, which is the world's third-largest stock market. Japan's share weight is 4.78 per cent. China, the UK, and Canada account for 3.33 per cent, 3.23 per cent, and 2.92 per cent. The company's contribution to the index is larger than the combined contribution of both France and Germany. The company used to weigh 3 per cent on the index in 2023. However, with the advent of artificial intelligence and NVIDIA's promise of providing chips to spearhead the AI revolution, the company's weight increased to 5 per cent. Why has Nvidia become a leading player Nvidia is the world leader in developing high-performance chips that power artificial intelligence adoption. The company has been posting record revenues from AI infrastructure. Nvidia used to make graphics cards that drove graphics-intensive tasks, including games, on computers and laptops. These are processors that are now key to building the technology behind ChatGPT. Nvidia designs these chips and also offers an entire infrastructure capable of making them work together. Nvidia's market share in this key sector is 80 per cent. America's AMD is the distant second competitor. AMD makes CPUs for personal and business computers. Several cloud provider companies have been working on their own chips to reduce dependence on Nvidia, including Google and Amazon. In China, Huawei ranks among Nvidia's most credible competitors. However, Nvidia continues to remain strong and underpins the vast majority of AI applications today.

Nvidia shares weight in MSCI All Country World Index: The company's contribution to the index is larger than the combined contribution of both France and Germany.

Nvidia represents 5.04 per cent of the key equity index, surpassing Japan: Report

Nvidia CEO Jensen Huang has pushed back against fears that the artificial intelligence (AI) chip boom is losing momentum. Speaking after the company’s second-quarter results, Huang said AI spending will expand into a multi-trillion-dollar market within the next five years.&nbsp;Despite this upbeat message, Nvidia shares slipped 1.56 per cent in premarket trading on Thursday as the company’s third-quarter forecast fell short of some investor expectations. The cautious outlook excluded any potential revenue from China, highlighting the ongoing uncertainty caused by trade restrictions between Washington and Beijing.&nbsp;<h2>‘A new industrial revolution has started’</h2>He told investors that AI is creating opportunities on a historic scale. “A new industrial revolution has started. The AI race is on,” he said, projecting $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade.&nbsp;He explained that data centres alone are expected to spend around $600 billion in 2025, with major buyers including Microsoft and Amazon. For a single $60 billion data centre project, Huang said Nvidia could supply as much as $35 billion worth of chips and systems.&nbsp;“The buzz is: everything sold out,” Huang said, pointing to strong demand for its high-end Blackwell chips and even older Hopper processors, which remain in high demand.&nbsp;<h2>Balancing investor caution and AI optimism</h2>While Huang’s forecast highlights Nvidia’s confidence, some investors remain wary. AI-related stocks have shown signs of slowing momentum, with OpenAI CEO Sam Altman recently warning that investors may be “overexcited” about AI.&nbsp;Matt Orton, head of advisory solutions at Raymond James, said Nvidia still has durability in its growth story: “The mega caps are the ones propelling a lot of the capital spending that Nvidia is benefiting from. You’re not seeing any slowdown in Nvidia’s results.”&nbsp;&nbsp;Portfolio manager Thomas Martin at Globalt Investments echoed this, noting that Nvidia’s order books for 2026 Blackwell chips are already full, showing how early the AI expansion still is.&nbsp;<h2>China's question remains unanswered</h2>Nvidia has not shipped its H20 reduced-capability chips to China in the latest quarter, even though a non-Chinese customer purchased $650 million worth of the same product. The lack of clarity over U.S.-China export rules continues to cast uncertainty on Nvidia’s growth potential in one of the world’s largest tech markets.&nbsp;The company’s cautious Q3 revenue forecast has therefore raised some concerns, though analysts note that Nvidia’s dominance in AI chips gives it significant room to expand outside China.Nvidia has outperformed much of the broader market this year, even surpassing Apple in quarterly net income. With AI infrastructure spending accelerating, Huang believes the company is still in the “early stages” of a long-term cycle.

Nvidia CEO Jensen Huang says AI spending will hit multi-trillion dollars within five years, calling it a new industrial revolution. Despite strong demand for its chips, Nvidia shares dipped as Q3 outlook excluded china due to trade restrictions.

Nvidia CEO Jensen Huang has pushed back against fears that the artificial intelligence (AI) chip boom is losing momentum. Speaking after the company’s second-quarter results, Huang said AI spending will expand into a multi-trillion-dollar market within the next five years. Despite this upbeat message, Nvidia shares slipped 1.56 per cent in premarket trading on Thursday as the company’s third-quarter forecast fell short of some investor expectations. The cautious outlook excluded any potential revenue from China, highlighting the ongoing uncertainty caused by trade restrictions between Washington and Beijing. ‘A new industrial revolution has started’ He told investors that AI is creating opportunities on a historic scale. “A new industrial revolution has started. The AI race is on,” he said, projecting $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade. He explained that data centres alone are expected to spend around $600 billion in 2025, with major buyers including Microsoft and Amazon. For a single $60 billion data centre project, Huang said Nvidia could supply as much as $35 billion worth of chips and systems. “The buzz is: everything sold out,” Huang said, pointing to strong demand for its high-end Blackwell chips and even older Hopper processors, which remain in high demand. Balancing investor caution and AI optimism While Huang’s forecast highlights Nvidia’s confidence, some investors remain wary. AI-related stocks have shown signs of slowing momentum, with OpenAI CEO Sam Altman recently warning that investors may be “overexcited” about AI. Matt Orton, head of advisory solutions at Raymond James, said Nvidia still has durability in its growth story: “The mega caps are the ones propelling a lot of the capital spending that Nvidia is benefiting from. You’re not seeing any slowdown in Nvidia’s results.” Portfolio manager Thomas Martin at Globalt Investments echoed this, noting that Nvidia’s order books for 2026 Blackwell chips are already full, showing how early the AI expansion still is. China's question remains unanswered Nvidia has not shipped its H20 reduced-capability chips to China in the latest quarter, even though a non-Chinese customer purchased $650 million worth of the same product. The lack of clarity over U.S.-China export rules continues to cast uncertainty on Nvidia’s growth potential in one of the world’s largest tech markets. The company’s cautious Q3 revenue forecast has therefore raised some concerns, though analysts note that Nvidia’s dominance in AI chips gives it significant room to expand outside China.Nvidia has outperformed much of the broader market this year, even surpassing Apple in quarterly net income. With AI infrastructure spending accelerating, Huang believes the company is still in the “early stages” of a long-term cycle.

Nvidia CEO Jensen Huang says AI spending will hit multi-trillion dollars within five years, calling it a new industrial revolution. Despite strong demand for its chips, Nvidia shares dipped as Q3 outlook excluded china due to trade restrictions.

Nvidia CEO says AI boom is just starting, predicts multi-trillion dollar growth

Nvidia’s $46.7 billion revenue and strong AI chip growth highlight massive demand for artificial intelligence, boosting Palantir’s stock 1,760 per cent and supporting rapid adoption of Palantir’s AI platform. Read more below.

How Nvidia’s $46.7 billion boost helped Palantir stock

&nbsp;Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth. Yet, the company still shipped no H20 chips to China, as negotiations and regulations remain unresolved.&nbsp;Powerful numbers, powered by AI chips&nbsp;In Q2, Nvidia’s revenue rose 56 per cent year-on-year, with net profit climbing 59 per cent . Data centre sales soared to $41.1 billion, powered in large part by the Blackwell platform with $27 billion directly attributed to Blackwell sales.&nbsp;Nvidia also approved a massive $60 billion share buyback, reflecting strong cash flow and investor focus on shareholder returns.&nbsp;<h2>China remains off-limits for H20 chips</h2>&nbsp;Despite U.S. approval under a 15 per cent revenue-sharing deal, Nvidia shipped zero H20 chips to China in Q2. CFO Collette Kress explained that the company is still awaiting full regulatory clarity. Meanwhile, $650 million worth of H20 chips were sold outside China.This absence likely shaved off $4-$8 billion in Q2 revenue potential. Optimistic forecast, cautious outlookFor Q3, Nvidia projects $54 billion in revenue ±2 per cent, ahead of analyst expectations (~$53.14 billion). However, shares fell by 3-5 per cent in after-hours trading, as investors eyed the China uncertainty and signs of data-centre momentum occasionally cooling.Despite this, CEO Jensen Huang remains bullish. He describes a “new industrial revolution” and expects $3-$4 trillion in AI infrastructure spending by 2030.

Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth. 

Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth. Yet, the company still shipped no H20 chips to China, as negotiations and regulations remain unresolved. Powerful numbers, powered by AI chips In Q2, Nvidia’s revenue rose 56 per cent year-on-year, with net profit climbing 59 per cent . Data centre sales soared to $41.1 billion, powered in large part by the Blackwell platform with $27 billion directly attributed to Blackwell sales. Nvidia also approved a massive $60 billion share buyback, reflecting strong cash flow and investor focus on shareholder returns. China remains off-limits for H20 chips Despite U.S. approval under a 15 per cent revenue-sharing deal, Nvidia shipped zero H20 chips to China in Q2. CFO Collette Kress explained that the company is still awaiting full regulatory clarity. Meanwhile, $650 million worth of H20 chips were sold outside China. This absence likely shaved off $4-$8 billion in Q2 revenue potential. Optimistic forecast, cautious outlook For Q3, Nvidia projects $54 billion in revenue ±2 per cent, ahead of analyst expectations (~$53.14 billion). However, shares fell by 3-5 per cent in after-hours trading, as investors eyed the China uncertainty and signs of data-centre momentum occasionally cooling. Despite this, CEO Jensen Huang remains bullish. He describes a “new industrial revolution” and expects $3-$4 trillion in AI infrastructure spending by 2030.

Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth.&nbsp;

Nvidia profits surge, but China’s H20 chip remains unsold

In countries where it intervened, the US had always advocated privatisation of their businesses. But two recent deals are making it look like the US is ‘nationalising’ its private sector—or at least entering business through the backdoor. How different is it from the free market ideals of the US? Here is a reality check.<h2>America, the land of the free market where government enters business through the backdoor?</h2>For all its preaching on privatisation—advising developing countries to keep their hands off the market or cheering on post-Soviet deregulation—America’s message was clear: government should never play entrepreneur.Come 2025, Uncle Sam (or should we say Donald Trump) seems to have dusted off his business suit, ready to sit at the corporate boardroom table.&nbsp;The recent government deals with Nvidia and Intel suggest that the US government, long averse to nationalisation, is now flirting with it.Add to that the reports suggesting the government may become some sort of player in keeping TikTok in the US, and you get the idea.None of this is happening through the front door.<a href="https://www.wionews.com/business-economy/nvidia-set-to-replace-intel-in-the-dow-jones-index-772924">Also read: Nvidia set to replace Intel in the Dow Jones Index</a><h2>What exactly is happening with Nvidia?</h2>This month, in a move that an authoritarian regime would envy, the Trump administration secured a 15 per cent revenue cut from Nvidia and AMD’s AI chip sales to China.In return, it granted them the golden ticket of export licences, after months of holding them back.This arrangement will affect chips like Nvidia’s H20 and AMD’s MI308. It's expected to add more than $2 billion to the US Treasury. Who needs taxes when you can just shake the corporates a little for profits?Critics are calling it an "unconstitutional export tax," while in practice it's a "pay-to-play" arrangement.&nbsp;It smacks of commercialising national security, with the government acting as a silent business partner—without actually investing a dime or breaking a sweat.<h2>Why is the Intel investment unusual for America?</h2>Intel, once the rock star of chip-making, has been struggling for some time. And an unlikely knight in shining armour has arrived: Donald Trump.The proposal is to transform some $10.9 billion in CHIPS Act grants into a 10 per cent equity stake for the government.This is basically another way of saying that the US government is going to become a major shareholder in a private company.Not quite socialism, right?The government explains this as support for domestic chip production, aligning with Trump’s “America First, Silicon Edition” policy.But it could also mean government intervention in Intel’s strategic decisions.<a href="https://www.wionews.com/business-economy/intel-faces-uncertain-future-amid-qualcomm-acquisition-talks-761023">Also read: Intel faces uncertain future amid Qualcomm acquisition talks</a><h2>State capitalism is bad when China does it, but nice when the US does it?</h2>The US has often scoffed at the 'state capitalism' of countries like China. Its officials raised concerns when the Chinese government took "golden shares" in private companies for strategic leverage.Now, it seems the US may be entering its own phase of state capitalism too.Experts are calling it a move divergent from America’s free-market ideals.These new arrangements open the door to bureaucratic interventions and a fresh wave of corporate lobbying.<h2>US government intervention in business is not new. Remember the financial crisis?</h2>The Nvidia and Intel deals do not reflect a government takeover of these businesses, at least not yet. But government interventions in business are not new—though still rare. The last most significant example was the ‘bailouts’ of the 2008 financial crisis.At the time, a very reluctant US government bought a 60 per cent stake in General Motors, later selling it at a $10 billion loss. It also took an 80 per cent stake in failing insurance giant AIG to stave off disaster.<a href="https://www.wionews.com/business-economy/intel-gets-2-billion-softbank-lifeline-as-chipmaker-struggles-for-ai-relevance-1755580359723">Also read: Intel gets $2 billion SoftBank lifeline as chipmaker struggles for AI relevance</a>&nbsp;Those were exceptional circumstances. But the current deals look more like business ventures, aimed at long-term strategic control of key sectors.There have been other, less-reported deals in recent months. For instance, the US Defence Department bought a $400 million stake in MP Materials in July.While free-market capitalism might still make for good PR, the US is now dabbling in the kind of state-run manoeuvring it once despised.The US government is no longer just regulating and monitoring the market—it’s entering it. With a chequebook.

The US government deals with chip makers Nvidia and Intel— taking revenue cuts and equity stakes- is raising questions about its avowed stance of keeping away from the markets. These moves echo China-style state capitalism. Here is why it matters

In countries where it intervened, the US had always advocated privatisation of their businesses. But two recent deals are making it look like the US is ‘nationalising’ its private sector—or at least entering business through the backdoor. How different is it from the free market ideals of the US? Here is a reality check. America, the land of the free market where government enters business through the backdoor? For all its preaching on privatisation—advising developing countries to keep their hands off the market or cheering on post-Soviet deregulation—America’s message was clear: government should never play entrepreneur. Come 2025, Uncle Sam (or should we say Donald Trump) seems to have dusted off his business suit, ready to sit at the corporate boardroom table. The recent government deals with Nvidia and Intel suggest that the US government, long averse to nationalisation, is now flirting with it. Add to that the reports suggesting the government may become some sort of player in keeping TikTok in the US, and you get the idea. None of this is happening through the front door. Also read: Nvidia set to replace Intel in the Dow Jones Index What exactly is happening with Nvidia? This month, in a move that an authoritarian regime would envy, the Trump administration secured a 15 per cent revenue cut from Nvidia and AMD’s AI chip sales to China. In return, it granted them the golden ticket of export licences, after months of holding them back. This arrangement will affect chips like Nvidia’s H20 and AMD’s MI308. It's expected to add more than $2 billion to the US Treasury. Who needs taxes when you can just shake the corporates a little for profits? Critics are calling it an "unconstitutional export tax," while in practice it's a "pay-to-play" arrangement. It smacks of commercialising national security, with the government acting as a silent business partner—without actually investing a dime or breaking a sweat. Why is the Intel investment unusual for America? Intel, once the rock star of chip-making, has been struggling for some time. And an unlikely knight in shining armour has arrived: Donald Trump. The proposal is to transform some $10.9 billion in CHIPS Act grants into a 10 per cent equity stake for the government. This is basically another way of saying that the US government is going to become a major shareholder in a private company. Not quite socialism, right? The government explains this as support for domestic chip production, aligning with Trump’s “America First, Silicon Edition” policy. But it could also mean government intervention in Intel’s strategic decisions. Also read: Intel faces uncertain future amid Qualcomm acquisition talks State capitalism is bad when China does it, but nice when the US does it? The US has often scoffed at the 'state capitalism' of countries like China. Its officials raised concerns when the Chinese government took "golden shares" in private companies for strategic leverage. Now, it seems the US may be entering its own phase of state capitalism too. Experts are calling it a move divergent from America’s free-market ideals. These new arrangements open the door to bureaucratic interventions and a fresh wave of corporate lobbying. US government intervention in business is not new. Remember the financial crisis? The Nvidia and Intel deals do not reflect a government takeover of these businesses, at least not yet. But government interventions in business are not new—though still rare. The last most significant example was the ‘bailouts’ of the 2008 financial crisis. At the time, a very reluctant US government bought a 60 per cent stake in General Motors, later selling it at a $10 billion loss. It also took an 80 per cent stake in failing insurance giant AIG to stave off disaster. Also read: Intel gets $2 billion SoftBank lifeline as chipmaker struggles for AI relevance Those were exceptional circumstances. But the current deals look more like business ventures, aimed at long-term strategic control of key sectors. There have been other, less-reported deals in recent months. For instance, the US Defence Department bought a $400 million stake in MP Materials in July. While free-market capitalism might still make for good PR, the US is now dabbling in the kind of state-run manoeuvring it once despised. The US government is no longer just regulating and monitoring the market—it’s entering it. With a chequebook.

The US government deals with chip makers Nvidia and Intel— taking revenue cuts and equity stakes- is raising questions about its avowed stance of keeping away from the markets. These moves echo China-style state capitalism. Here is why it matters

Nvidia, Intel deals with US govt: Is the Trump administration sneakily 'nationalising' firms in the name of capitalism?

Nvidia and AMD, the leading American semiconductor firms, are reportedly going to hand over 15 per cent of their revenues from Artificial Intelligence chip sales from China to the US government. This is unprecedented if true, and is sure to stun both the business and political leaderships across the world. Why is it a strange deal? Find out below:&nbsp;<h2>What's the 15 per cent revenue deal of Nvidia and AMD with US govt?</h2>

If media reports are to be believed, the chipmaking leaders will hand over 15 per cent of their China chip revenue to the US government. It's not a tax or a fine, but just a ‘deal’ to make sure they are allowed to keep selling certain AI chips to China.That's important for them, because they desperately want to export to China, which the US government has been restricting.&nbsp;The never-before deal will likely allow them to continue with China exports, a sort of "pay-to-play' arrangement in a legal grey zone.<h2>Nvidia - AMD deal with US : Why is it strange?</h2>This is an instance of the US government not just regulating but also profiteering. It’s going to take a cut of private business like a silent shareholder, something relatively unheard of in American capitalism.Critics say the ‘arrangement’ looks more like a cash grab than a security safeguard.This extra cost may be baked into the price of the chips, which might make Chinese buyers look elsewhere or speed up their own domestic chip production.<h2>Nvidia-AMD payments: Is it a deal with Trump’s fingerprints?</h2>The deal was reportedly hammered out during Donald Trump’s meetings with tech giants, with Nvidia’s CEO meeting the US president directly. The whole thing is causing questions of a “quid pro quo.”<h2>Why Nvidia-AMD payment news is a dangerous new precedent</h2>With the deal, Nvidia and AMD can potentially stay in the massive Chinese market, albeit with more red tape, higher compliance costs, and public and regulatory scrutiny.For the US government, it is a way to make money off tech exports while keeping China in check.&nbsp;For China, the move could push it to double down on homegrown AI chip technology, cutting out US firms altogether in the future.Other countries might also copy this model, thus turning the global tech industry in the age of AI into a battlefield of profit-sharing and protectionism.<a href="https://www.wionews.com/videos/tech-giant-nvidia-releases-a-statement-denying-the-existence-of-kill-switch-in-ai-chips-1754502261887/embed">https://www.wionews.com/videos/tech-giant-nvidia-releases-a-statement-denying-the-existence-of-kill-switch-in-ai-chips-1754502261887/embed</a><h2>Shakedown in a suit: Why the Nvidia-AMD China deal is raising fears&nbsp;</h2>This 15 per cent deal isn’t just unusual, it’s a game-changer as the US government is acting like a business partner in private tech sales. Critics say it’s a shakedown in a suit, blurring the lines between national security and national profit, with some feeling it could even be unconstituional.&nbsp;

The never-before deal will likely allow them to continue with China exports, a sort of "pay-to-play' arrangement in a legal grey zone.

Nvidia and AMD, the leading American semiconductor firms, are reportedly going to hand over 15 per cent of their revenues from Artificial Intelligence chip sales from China to the US government. This is unprecedented if true, and is sure to stun both the business and political leaderships across the world. Why is it a strange deal? Find out below: What's the 15 per cent revenue deal of Nvidia and AMD with US govt?

The never-before deal will likely allow them to continue with China exports, a sort of "pay-to-play' arrangement in a legal grey zone.

Strange times, stranger deals: Why Nvidia, AMD plan to give 15 per cent China revenue to Trump govt is as weird as it gets

China has escalated its tech security battle with the United States, targeting Nvidia’s latest H20 artificial intelligence chips with claims they are unsafe, outdated and environmentally unfriendly. The sharp criticism, published by an account linked to state broadcaster CCTV, comes just weeks after Beijing formally summoned the US chipmaker over alleged “backdoor” access in its hardware.&nbsp;The WeChat article from Yuyuan Tantian, a social media handle affiliated with CCTV, said the H20 chips were not advanced, not green, and not secure. It argued that Chinese consumers “have the option not to buy” products that fail on all three counts. The statement builds on earlier criticism from People’s Daily, the Communist Party’s flagship paper, which demanded “convincing security proofs” from Nvidia to restore market trust. As per Reuters, this is the latest in a string of warnings from Beijing against foreign tech suppliers amid tightening controls over critical digital infrastructure.<h2>The ‘backdoor’ allegation</h2>China’s cyberspace watchdog met Nvidia executives on 31 July to question whether the H20 chips contained any hardware “backdoor," a hidden method to bypass normal authentication or security controls. State media claims such access could enable functions like remote shutdown of the hardware.Nvidia, in response, said its products contain no such backdoors and do not allow remote access or control.<h2>The US–China chip flashpoint</h2>The H20 is one of several chips Nvidia designed specifically for China after the US imposed sweeping AI chip export restrictions in late 2023. The administration of President Donald Trump initially banned H20 sales in April 2025 amid rising trade tensions, but later reversed the decision in July to allow limited exports.&nbsp;The chip has since faced scepticism in China, not just over security risks, but also its performance. Analysts note that the H20 is less powerful than Nvidia’s top global AI chips due to US export rules, potentially limiting its adoption in China’s rapidly evolving AI sector.<h2>What this means for the tech war?</h2>Security claims against Nvidia fit into a broader pattern of mutual distrust between Washington and Beijing over semiconductors — the backbone of artificial intelligence, cloud computing, and military systems.&nbsp;While the US accuses China of technology theft and national security risks from its hardware, Beijing is now mirroring those arguments, scrutinising American chips for possible vulnerabilities. If Chinese buyers shun the H20, Nvidia risks losing a major share of one of its biggest international markets.&nbsp;(With inputs from the agencies)&nbsp;

The H20, designed for China after US export curbs, was briefly banned under Trump before limited sales resumed in July. With state media warning consumers to avoid the product, the standoff signals deepening distrust in the US and China chip war and could jeopardize Nvidia’s China market share.

China has escalated its tech security battle with the United States, targeting Nvidia’s latest H20 artificial intelligence chips with claims they are unsafe, outdated and environmentally unfriendly. The sharp criticism, published by an account linked to state broadcaster CCTV, comes just weeks after Beijing formally summoned the US chipmaker over alleged “backdoor” access in its hardware. The WeChat article from Yuyuan Tantian, a social media handle affiliated with CCTV, said the H20 chips were not advanced, not green, and not secure. It argued that Chinese consumers “have the option not to buy” products that fail on all three counts. The statement builds on earlier criticism from People’s Daily, the Communist Party’s flagship paper, which demanded “convincing security proofs” from Nvidia to restore market trust. As per Reuters, this is the latest in a string of warnings from Beijing against foreign tech suppliers amid tightening controls over critical digital infrastructure. The ‘backdoor’ allegation China’s cyberspace watchdog met Nvidia executives on 31 July to question whether the H20 chips contained any hardware “backdoor," a hidden method to bypass normal authentication or security controls. State media claims such access could enable functions like remote shutdown of the hardware. Nvidia, in response, said its products contain no such backdoors and do not allow remote access or control. The US–China chip flashpoint The H20 is one of several chips Nvidia designed specifically for China after the US imposed sweeping AI chip export restrictions in late 2023. The administration of President Donald Trump initially banned H20 sales in April 2025 amid rising trade tensions, but later reversed the decision in July to allow limited exports. The chip has since faced scepticism in China, not just over security risks, but also its performance. Analysts note that the H20 is less powerful than Nvidia’s top global AI chips due to US export rules, potentially limiting its adoption in China’s rapidly evolving AI sector. What this means for the tech war? Security claims against Nvidia fit into a broader pattern of mutual distrust between Washington and Beijing over semiconductors — the backbone of artificial intelligence, cloud computing, and military systems. While the US accuses China of technology theft and national security risks from its hardware, Beijing is now mirroring those arguments, scrutinising American chips for possible vulnerabilities. If Chinese buyers shun the H20, Nvidia risks losing a major share of one of its biggest international markets. (With inputs from the agencies)

China has intensified its tech security offensive against the US by publicly attacking Nvidia’s H20 AI chips as insecure, outdated, and environmentally unfriendly. The criticism follows a formal inquiry into alleged “backdoor” access — claims Nvidia denies.

China calls Nvidia H20 chips unsafe, cites ‘backdoor’ concerns

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