Nvidia CEO Jensen Huang is flying to China just as the company's access to its second-largest market hangs in the balance. The timing isn't coincidental - sources tell CNBC Huang will touch down in Beijing ahead of Lunar New Year to salvage relationships with Chinese buyers after fresh restrictions threaten to choke off what was once a fifth of the chipmaker's data center revenue. It's a high-stakes diplomatic mission disguised as a company party.
Nvidia CEO Jensen Huang is making another pilgrimage to Beijing, but this time the stakes couldn't be higher. Two sources familiar with the matter told CNBC that Huang plans to arrive in China in the coming days, with a company party scheduled for Monday serving as the public-facing reason for the trip. But behind the Lunar New Year celebrations lies a more urgent mission - salvaging Nvidia's crumbling position in the world's second-largest economy.
The trip comes at a precarious moment. The Information reported last week that Chinese authorities would only approve purchases of Nvidia's H200 AI chips for limited research purposes, effectively blocking commercial sales. When pressed on Thursday, China's Commerce Ministry played dumb, claiming ignorance of the situation. That non-denial denial has Nvidia scrambling.
Huang isn't just showing up for dumplings and red envelopes. A person with direct knowledge of the travel plans told CNBC he'll meet with potential buyers and hash out recent logistical nightmares around supplying U.S.-approved chips into the Chinese market. These are the watered-down GPUs that Nvidia specifically designed to comply with Washington's export restrictions - chips that are supposed to keep at least some revenue flowing from a market that once delivered at least one-fifth of the company's data center business.
