NVIDIA plans new R&D center in Shanghai, should help its AI GPU business in China

NVIDIA CEO Jensen Huang is expected to unveil its new global HQ in Taipei, Taiwan this week with Computex 2025 starting in just a couple of days time, but now we're hearing news that NVIDIA is preparing to build a new R&D facility in Chinahai that would help the company stay competitive with AI GPUs in China.

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In a new report from the Financial Times, we're hearing that NVIDIA is reportedly looking to build a new research and development center in Shanghai, China, which would help the company stay competitive in China. NVIDIA has been hit with a sales dive over continuously tightened US export restrictions, so NVIDIA is working around that with this proposed new R&D facility in Shanghai.

NVIDIA CEO Jensen Huang reportedly talked about his plans with Shanghai mayor Gong Zheng when the two met in the city last month, with the usual "according to two people with knowledge of the matter". NVIDIA is leasing a new office space in Shanghai that will house all of its existing employees, as well as room for expansion.

According to FT's sources, the new R&D center would research the specific demands of customers and the complex technical requirements required to satisfy the United States' moving goal posts with export restrictions on high-end AI hardware.

The actual core design and productivity will remain overseas, but due to legal sensitivity around transferring intellectual property to China, with NVIDIA saying: "We are not sending any GPU designs to China to be modified to comply with export controls".

NVIDIA's new team Shanghai would also work on global R&D projects including verification of chip designs, optimizations of existing products and sector focus research including autonomous driving. Huang wants to also make sure there's access to top artificial intelligence talent that's based in China, with NVIDIA currently advertising roles based in Shanghai in preparation for its new R&D facility.

This includes looking for new engineers that will help NVIDIA "guide the development of next-generation deep learning hardware and software, and develop and optimize ASIC designs that compete on a global scale".

China represents around 14% of NVIDIA's total revenues in 2024 -- representing around $17 billion -- with Huang estimating this could rise up to be a $50 billion (or more) market in the next few years.

NVIDIA CEO Jensen Huang said at a Milken Institute event last week: "We want to build the world's AI (where) American standards are being adopted around the world. If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable... they'll step in".