Nvidia addresses AI chip smuggling, says bootleg data centers are a 'losing proposition'

Interestingly, From an analytical perspective, Nvidia responded to a Financial Times report that at least $1 billion worth of its artificial intelligence chips illegally entered China. "Datacenters require service and support, which we vide only to authorized NVIDIA ducts," Nvidia said in a statement to CNBC, in today's financial world

Last week, Nvidia CEO Jensen Huang said it would soon resume selling its H20 chips to China after a breakthrough with the Trump administration on regulations (something worth watching)

In this articleNVDA your favorite stocksCREATE FREE ACCOUNTwatch now2:1202:12Nvidia GPUs face headwinds in ChinaCheckNvidia said Thursday that data centers built with smuggled chips are a "losing position" and that it does not support unauthorized ducts

On the other hand, "Trying to cobble together datacenters from smuggled ducts is a losing position, both nically and economically," a spokesperson said in a statement to CNBC. "Datacenters require service and support, which we vide only to authorized NVIDIA ducts

Nevertheless, "According to the FT report, at least $1 billion worth of the company's chips entered China as President Donald Trump rolled out restrictions on shipments of the company's H20 chips to the world's second-largest economy

Nvidia's B200 chips, which are hibited from being sold to China, have become on the black market despite restrictions, the FT reported, citing sales contracts, company filings and people familiar with the deals

Read more CNBC reporting on AIMusk's xAI scores permit for gas-burning turbines to power Grok supercomputer in MemphisIlya Sutskever becomes CEO of Safe Superintelligence after Meta poached Daniel Gross Google, China's biggest player Baidu is beefing up its duct with AI to fight rivalsAI-powered VTubers are earning millions with fully virtual personalitiesChinese distributors began selling the chips in May to data center suppliers whose customers include Chinese AI groups, the report said

Furthermore, For years, the U, given the current landscape

And China have competed to lead the artificial intelligence race

China serves as a major market for chipmakers, but the U

Has restricted many advanced cessor sales there due to national security concerns, considering recent developments

Last week, Nvidia CEO Jensen Huang said it would soon resume selling its H20 chips to China after a breakthrough with the Trump administration on regulations

Additionally, Government had effectively blocked sales to China in April when it told the company it would require a license (fascinating analysis)

Market analysis shows chip was created to work around previous export controls on China, given current economic conditions

Huang has said he wants to sell more advanced chips than the H20 to China, given the current landscape