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🗓️ 28 July 2025
⏱️ 10 minutes
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Nvidia Returns to China’s AI Market boosts China's access to powerful AI infrastructure despite previous restrictions. Join us for a breakdown of the deal, its context, and its likely consequences.
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0:00.0 | Nvidia is set to start shipping chips back to China again after months of this thing being in limbo. |
0:06.9 | And really for the last few years, |
0:08.8 | Nvidia has been trying to figure out all the regulatory restrictions that the United States is putting on it. |
0:13.8 | So we're going to get into the background of where it's been in the past, |
0:17.5 | why they're able to start shipping this again, what changed, |
0:20.1 | and also how many billions of dollars this is going to add to NVIDIA's overall revenue. This is really crazy numbers, and the reason why they're back on track is also quite a crazy story. So we're going to be diving into all of that on the podcast today. But before we did, I wanted to mention if you want to try all of the top AI models, so I'm going to get subscriptions to every single platform that exists out there. I recommend check, you know, AIbox.AI. This is my own platform that I'm building. We're currently in beta. And you can try the top 40 AI models, including a model from Nvidia called Numetron 70B that they put out. There's a ton of other models from all the top companies like Anthropic, OpenAI, Meta, Google that you'd expect, as well a bunch of interesting ones for image generation from Black Forest Labs, ideogram. We have text to speech from OpenAI and 11 labs and tons of other models. So if you want to try out all of that for $20 a month, you don't need subscriptions to every platform. Go check out AIbox.a.i and lots more exciting stuff |
1:14.8 | launching from my startup in the future. All right, let's get into what's going on with |
1:19.6 | NVIDIA. So this is going to be Monday that NVIDIA made this big announcement. And essentially |
1:25.5 | they're able to start, they're able to |
1:27.7 | restart the sale of their H20 AI chips to China. So this is something that they were |
1:32.1 | formerly selling, essentially. And then the Trump administration put a bunch of restrictions on. |
1:37.5 | They eventually change those restrictions and they're able to start selling again. So the company |
1:43.7 | essentially is expecting to receive all of the licenses from the government soon that they need to ship these out. |
1:50.0 | Um, Invidia is also creating a new RTX pro chip that's designed specifically for the Chinese market. So they're saying, you know, this is fully compliant with all the regulations. |
1:58.9 | Basically, the regulations came out. And a lot of this also came out, I think, under Biden with the Chips Act and other things. But essentially, the government said, we don't want China to, you know, compete with us with our adversary and be, you know, number one in AI. We want to give American companies a leg up. So they essentially just restricted what in video was allowed to ship to China. They weren't allowed to ship the most powerful chips. Now, did this stop China? Like, no, we see |
2:23.1 | companies like deep seeking other big companies coming out of China with pretty powerful AI. |
2:26.8 | And a lot of this is due to the fact that companies would just register, or just purchase chips in |
2:32.0 | Singapore, which doesn't have any restrictions. They'd ship them to China and just kind of make the profit. I think one of the big things that shocked a lot of people is the fact that 30% of Nvidia's revenue came from Singapore. It's like, oh, wow, Singapore accounts for like almost as much as any other country in the entire world. But really, Singapore is just kind of a filling for China. So there's a bunch of restrictions. There's a bunch of loopholes. And Vida denies any wrongdoing in this situation. But regardless, it is a tricky situation. They're trying to, they're trying to work with the U.S. government and get around this. So these new chips are supposed to be, supposed to be, you know, fully compliant and able to ship to China. |
3:08.7 | So these are the H20 chips. |
3:10.9 | Of course, there's a huge kind of fight between the U.S. and China. |
3:15.3 | Most of Invida's advanced AI processors are not allowed to be shipped to China. |
3:21.9 | The H20 is the most powerful chip that they can legally sell to China under the current |
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