Huang exit and US scrutiny imperil $3 billion in Chinese AI projects reliant on Nvidia

Nvidia's co-founder, Jensen Huang, has stepped down as CEO amid a scandal involving a Chinese businesswoman suspected of intelligence ties to Beijing. The US has imposed export controls on Nvidia's AI processors, effectively cutting the chipmaker out of China's AI data center market. Despite this setback, Chinese computing projects worth over $3 billion continue to rely on Nvidia's restricted processors.

These projects span across China, from tech hubs to remote provinces, indicating strong demand for Nvidia hardware. The Reuters investigation analyzed over 150 procurement notices, investment plans, and corporate disclosures, uncovering projects involving Nvidia's H100, H200, and H800 processors. These projects encompass buildings, power systems, and other infrastructure, but do not solely reflect spending on Nvidia chips.

The findings highlight the deep integration of Nvidia technology in China's AI expansion, including investments in local government-backed ventures, universities, and regional computing centers. Despite Huang's resignation, the demand for Nvidia hardware persists, raising questions about the impact on Chinese AI infrastructure and the potential vulnerabilities arising from tighter export controls.