Reuters Finds $3 Billion in Chinese AI Projects Built on Restricted Nvidia Chips

Nvidia (NVDA) has said US export controls effectively shut it out of China's AI data-centre market, but a Reuters review published Thursday identified more than $3 billion in Chinese computing projects built around the chipmaker's restricted processors.

The review examined more than 150 Chinese procurement notices, investment plans, construction contracts and corporate disclosures, finding projects and equipment agreements with a combined reported value exceeding 23 billion yuan ($3.2 billion). The estimate includes planned investments and signed contracts as well as completed installations, and covers buildings, power systems and other infrastructure rather than chip spending alone.

What the documents show

The findings paint a detailed picture of how deeply Nvidia technology remains embedded in China's AI expansion, reaching well beyond the country's largest tech firms into local government-backed ventures, universities and regional computing centres. Across China, developers and institutions are advancing billions of dollars in AI data-centre projects designed around restricted Nvidia H100, H200 and H800 processors, ranging from massive regional computing hubs to retrofitted commercial sites. One facility in northwestern Gansu province was expected to install thousands of Nvidia chips before year-end, though it remains unclear whether those processors ever arrived.

While some facilities are already operational or under construction, operators face potential delays, supply disruptions or costly redesigns around domestic chips as export controls tighten.

Washington's dilemma

Washington began restricting Nvidia's advanced AI processors in 2022 and subsequently tightened controls on modified chips developed for China, including the H800. In January, the Trump administration moved to review H200 export licences for eligible Chinese customers individually, subject to conditions. Nvidia's August filing said it was effectively excluded from China's data-centre computing market. But an IDC report cited by Reuters in October estimated Nvidia still accounted for 34% of Chinese AI-accelerator shipments in the first half of 2026. The two figures measure different things and do not establish how the restricted hardware identified in the review reached Chinese users.

Nvidia co-founder Jensen Huang, who resigned as chief executive on Thursday amid a scandal over his relationship with a Chinese businesswoman suspected by US authorities of intelligence ties to Beijing, said last year the company's market share in China had fallen from 95% to zero. Nvidia has also excluded China data-centre computing revenue from its forecasts, citing regulatory uncertainty.

Sunny Cheung, an analyst at the Washington-based Jamestown Foundation, said the findings reinforce his view on enforcement and that Washington should look beyond who buys chips on the surface to who ultimately uses the computing power and for what purpose.

Huang's departure could deepen these vulnerabilities by weakening Nvidia's lobbying leverage as US lawmakers press for tighter controls. The scrutiny has intensified since his resignation on Thursday, following allegations involving Alice Huang, a former executive associated with Singapore-based Nvidia cloud partner Megaspeed. Megaspeed has denied illegally diverting Nvidia chips to China, and Nvidia's board launched an independent investigation, saying it had no reason to believe company secrets or US national security were compromised. There has been no public finding that Jensen Huang violated export-control laws. The Chinese projects identified by Reuters have not been linked to Megaspeed or the allegations involving Huang.

Nvidia and China's commerce ministry did not immediately respond to Reuters' request for comment.

Shares of Nvidia were down 2.0% in delayed trading.