Nvidia in talks with U.S. to sell more advanced chip to China: Huang

Nvidia CEO Jensen Huang said on Friday that the US government had negotiated with a new, more advanced chip to China.

At the beginning of this week, Reuters The US technology giant has developed a new artificial chip called B30A for China and will be stronger than the H20 – Nvidia is currently allowed to sell in the country. In the last few years, the US has worried that advanced American chips could be used in Chinese military practices.

A journalist asked Huang about the B30a during a trip to Taiwan.

“To offer a new product to China for the data center, AI data centers, the follow -up of the H20, this is not our decision. Of course, the US government. And we are in dialogue with them. But too early to know, Hu Huang said.

Last month, Huang said that Nvidia hoped that during the visit to the country, she could sell more advanced chips than the H20 in China.

Nvidia’s position in China has become a headache for Huang. The company created a special, less developed chip for China, H20, which the US government limited for export this year. In July, Nvidia said it gave permission to sell this chip in China again. Later, it turned out that NVIDIA would give 15% of Chinese chip sales to the US government in exchange for export licenses.

Just as Nvidia returned to China, he hit other barricades, and Chinese officials expressed their concerns about the potential security vulnerabilities on the company’s chips this month. Nvidia said it was not “killing switches and rear ovens” into its products.

A few reports this month claimed that the Chinese government called on local companies not to use Nvidia chips.

Huang argued that Nvidia should be allowed to sell her chips to China, so that the country’s artificial intelligence was built on American technology and domestic technology giants such as Huawei do not fill the gap.

This message reached Washington. In July, when the H20 was re -approved for exports, US Trade Secretary Howard Lutnick said that the action was allowed to act as NVIDIA will not give the best technology of NVIDIA.

“We don’t sell them the best items to them, not the second best items, not even the third best.” He said.

However, Financial Times Reported On Thursday, these comments were seen by the Chinese authorities as “insults” and local regulators moved to the acquisition of domestic companies H20.

A report on Friday said that NVIDIA asked some component suppliers that he wanted to stop the production of H20 graphic processing units.

The company’s shares dropped 1.34% in premmarket trade in AM ET

– Dylan Butts from CNBC contributed to this report.