Jensen Huang exit: Over $3 billion worth of Chinese AI projects reliant on Nvidia in peril

More than $3 billion worth of Chinese computing projects built around restricted Nvidia processors could face delays, supply disruptions or costly redesigns amid increased scrutiny of the chipmaker following the resignation of co-founder Jensen Huang as chief executive. The resignation comes amid a scandal involving a Chinese businesswoman suspected by US authorities of intelligence ties to Beijing.

According to a report in Reuters that reviewed over 150 Chinese procurement notices, investment plans, construction contracts and corporate disclosures identified projects and equipment agreements that were valued at more than 23 billion yuan ($3.2 billion). These projects are located in technology hubs along China's wealthy coast as well as in remote western provinces.

MUST READ | Why Nvidia could fire Jensen Huang but Meta and Tesla cannot remove Zuckerberg, Musk -- Devina Mehra explains

The findings showed ongoing demand for Nvidia hardware in China despite Washington's efforts to restrict Beijing's access to advanced artificial intelligence chips. Nvidia technology remained embedded in projects involving local government-backed ventures, universities and regional computing centres, it said.

The estimate covered planned investments, signed contracts and completed installations, including buildings, power systems and other infrastructure, not just spending on Nvidia chips alone.

Developers and institutions are advancing AI data-centre projects worth billions of dollars designed around restricted Nvidia H100, H200 and H800 processors. Some facilities are operational or under construction, while others are still in planning stages. For example, a facility in northwestern Gansu province was expected to install thousands of Nvidia chips before the end of the year, though it is unclear if the processors have arrived.

DON'T MISS | ‘No further investment without Jensen’: Billionaire Leo KoGuan stands by ousted Nvidia CEO

Huang's departure could reduce Nvidia's lobbying influence as US lawmakers push for tighter export controls. He had been a vocal advocate for easing restrictions and said last year that Nvidia's market share in China had dropped from 95% to zero.

Nvidia has stated that US export controls have effectively shut it out of China's AI data-centre market and excluded Chinese data-centre computing revenue from its forecasts. However, an IDC report estimated that Nvidia still accounted for 34% of Chinese AI-accelerator shipments in the first half of 2026.

The projects identified by Reuters have not been linked to Megaspeed or the allegations involving Huang. Megaspeed has denied illegally diverting Nvidia chips to China. Nvidia's board has launched an independent investigation, stating there is no reason to believe company secrets or US national security were compromised. There has been no public finding that Huang violated export-control laws.

MUST READ | US wants tighter restrictions on AI chip sales to China: Why Beijing could face the brunt of the Jensen Huang scandal

Washington began restricting advanced Nvidia processors in 2022 and has since tightened controls. The US administration also moved in January to review H200 export licences for eligible Chinese customers on a case-by-case basis.