At the Beijing Expo, Jensen Huang also announced plans for a new chip for Chinese clients that is designed for robotics and smart factories.

Amid rising doubts over China's AI trajectory, two setbacks have rattled its startup ecosystem: Manus, the buzzed-about AI agent startup, is reportedly exiting the Chinese market, while DeepSeek R2 — a trillion-parameter large language model — is facing a critical GPU shortfall.

Nvidia plans to increase the supply of its H20 chips to China, aiming to strengthen its position in the lucrative Chinese technology market. This move follows the lifting of an export ban and comes as Nvidia navigates US-China trade tensions.

Data center operators in China, which use Nvidia’s H20 chips to crunch data for various AI services, have been struggling to find a local alternative that is as good as the U.S. company’s chips.