NVIDIA denies plan to spin off future operations in China, US export controls causing headaches

NVIDIA is reportedly considering establishing a joint venture in China in order to preserve its CUDA ecosystem, could spin off its Chinese operations.

NVIDIA denies plan to spin off future operations in China, US export controls causing headaches
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TL;DR: NVIDIA denies rumors of spinning off its Chinese operations to bypass US export controls, calling such claims baseless. CEO Jensen Huang recently met Chinese officials to reinforce cooperation, despite US restrictions banning NVIDIA’s H20 AI GPUs in China, which led to a $5.5 billion Q1 2025 write-off.

NVIDIA is denying reports that it would be spinning off its Chinese operations so it acted as a standalone business, which would side-step strengthening US export controls.

There have been rumors and reports of this for the last few days, but NVIDIA has officially said: "There is no basis whatsoever for any of these claims. It is irresponsible to publish baseless claims and speculation as fact".

The original post was on X by leaker @Jukanlosreve and later reported by the likes of DigiTimes, that NVIDIA CEO Jensen Huang was considering establishing a joint venture in mainland China to maintain the operations of the company's leading CUDA computing platform, as well as other business interests in the company.

NVIDIA CEO Jensen Huang has made a second visit to China in the last three months, meeting with Chinese officials including He Lifeng, the Chinese vice-premier in charge of US-China trade talks, as well as Shanghai mayor Gong Zheng. Huang was invited to China by the China Council for the Promotion of International Trade, which is a state-backed body representing Chinese exporters.

Jensen also met with Ren Hongbin, who is the chairman of the council, where he expressed hope that NVIDIA would continue to cooperate with China given that it was a "key market" for the company, according to state-owned China Central Television. NVIDIA recently had its made-for-China H20 AI GPU banned from China through tighter US export restrictions, causing the company to write off $5.5 billion from its Q1 2025 results.