China Uncovers AI Projects Worth $3.2 Billion Involving NVIDIA Chips

• Reuters has uncovered over $3 billion in Chinese computing projects focused on restricted American NVIDIA chips.
• The documents cover more than 150 procurement, investment plans, and construction contracts, including projects involving the H100, H200, and H800.
• The departure of Jensen Huang as CEO amid scandal and increased scrutiny from Washington may complicate the implementation of these initiatives.

China continues to develop its artificial intelligence infrastructure based on NVIDIA chips despite American export restrictions. According to an analysis of over 150 procurement documents, investment plans, and contracts conducted by Reuters, the total value of the identified computing projects exceeds 23 billion yuan, or approximately $3.2 billion.

In light of the resignation of NVIDIA co-founder Jensen Huang as CEO and increased U.S. oversight, these projects may face delays, supply disruptions, or the need to switch to Chinese alternatives.

The identified initiatives include both large regional computing centers and the retrofitting of commercial facilities. They involve infrastructure designed for the use of restricted American NVIDIA accelerators H100, H200, and H800.

At the same time, the $3.2 billion does not represent the cost of the chips themselves. The estimate includes planned investments, signed contracts, and already implemented projects, including expenses for buildings, electricity supply, and other infrastructure. Reuters also did not determine how all the mentioned processors made their way to China.

Chinese Demand Persists Despite U.S. Export Restrictions

The documents indicate that NVIDIA technologies remain a crucial part of China's AI infrastructure not only for the largest tech companies but also for universities, regional computing centers, and projects involving local governments.

Among the examples is a facility in Gansu province in northwest China, where thousands of NVIDIA chips were planned to be installed by the end of the year. However, it is currently unknown whether this equipment has actually been delivered.

Washington has restricted the export of advanced AI processors to China since 2022 and later expanded control to modified versions of chips, including the H800. In January, the administration of former U.S. President Donald Trump implemented individual license reviews for the supply of H200 to specific Chinese customers under certain conditions.

At the same time, data on NVIDIA's market share in China varies depending on the methodology. Last year, Huang stated that the company's share had dropped from 95% to zero. In NVIDIA's August report, the company effectively excluded revenues from data centers in China from its forecasts due to regulatory uncertainty.

However, IDC's estimate cited by Reuters in October indicated that in the first half of 2026, NVIDIA accounted for 34% of AI accelerator shipments in China. These figures measure different aspects of the market and do not prove that all the chips identified by Reuters were imported legally.

Huang's Resignation Heightens Uncertainty

Reuters' publication came the day after Jensen Huang stepped down as CEO of NVIDIA amid a scandal regarding his connections with Chinese businesswoman Alice Huang, whom U.S. authorities suspect of possible ties to Chinese intelligence. The situation has already attracted the attention of American lawmakers, who have called for tighter export controls on advanced chips.

Huang had previously advocated for easing restrictions and emphasized the importance of the Chinese market for NVIDIA. His departure may weaken the company's lobbying position in Washington amid calls for further tightening of controls.

Separately, Reuters highlights NVIDIA's Singapore cloud partner Megaspeed, linked to Alice Huang. The company denied illegal redirection of chips to China. NVIDIA's board of directors has initiated an independent investigation, stating that it has no reason to believe that corporate secrets or U.S. national security are at risk. There are no public conclusions regarding Huang's violations of export legislation.

At the same time, Reuters emphasizes that the Chinese projects identified during the document analysis are not related to Megaspeed or the accusations surrounding Huang.

Analyst Sunny Cheng from the Jamestown Foundation believes that U.S. regulatory bodies should focus not only on formal purchasers of equipment but also on the end users of computing power:

< <Washington needs to stop focusing solely on who formally buys the chips and start figuring out who ultimately uses the computing power --- and for what purpose> >.

Previously, we reported that U.S. Senators Elizabeth Warren and Jim Banks called on Congress to strengthen restrictions on the export of advanced NVIDIA chips to China.