On August 29, Fast Technology reported that NVIDIA CEO Jensen Huang announced the company is in talks with the U.S. government about selling its latest Blackwell AI GPUs to China. Huang expressed a willingness to share the profits from these sales with the U.S. government.
Previously, the U.S. government required NVIDIA to share 15% of profits for licenses to sell H20 GPUs in China. The Blackwell GPU architecture represents NVIDIA’s latest advancement in AI technology, and reports suggest that the company is developing a specialized version to comply with U.S. export controls targeted at the Chinese market.
NVIDIA’s recent financial report revealed that overall revenue and earnings per share were higher than market expectations. However, revenue from their data center business was slightly below forecast. The company’s CFO noted that the absence of H20 GPU sales during the second quarter was due to these transactions occurring post-July, thus not reflected in that quarter’s earnings.
During a financial call, Huang emphasized the importance of adopting the U.S. technology stack as a global benchmark, acknowledging the real potential of introducing Blackwell GPUs to China. The financial report projects NVIDIA’s third-quarter revenue to be $54 billion, not accounting for potential China sales, which might explain the company’s stock underperformance post-report.
Achieving these sales could significantly boost NVIDIA’s revenue beyond expectations and potentially lift their data center business figures above anticipated levels.
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