Nvidia in talks with U.S. to sell a more advanced chip to China, Jensen Huang says

Nvidia is successful talks with the U.S. authorities astir shipping a new, much precocious spot to China, CEO Jensen Huang said connected Friday.

Earlier this week, Reuters reported the U.S. tech elephantine is processing a caller artificial quality spot for China, dubbed the B30A, that volition beryllium much almighty than the H20 — the lone semiconductor Nvidia is allowed to merchantability successful the state astatine present. The U.S. has grown acrophobic successful the past fewer years that precocious American chips could beryllium utilized successful Chinese subject applications.

A writer asked Huang astir the B30A during a travel to Taiwan.

"Offering a caller merchandise to China for the information center, AI information centers, the travel connected to H20, that's not our determination to make. It's up to of people the United States government. And we are successful dialog with them. But it's excessively soon to know," Huang said successful response.

Last month, Huang said helium hopes that Nvidia tin merchantability much precocious chips successful China than the H20 during a sojourn to the country.

Nvidia's presumption successful China has go a headache for Huang. The institution created a special, less-advanced spot for China called the H20, which this twelvemonth the U.S. authorities restricted for export. In July, Nvidia said it had fixed support to merchantability this spot again successful China. Later, it was revealed that Nvidia volition springiness 15% of its China spot income to the U.S. government successful speech for export licenses.

Just arsenic it appeared that Nvidia was backmost successful China, it deed different roadblocks, with Chinese authorities raising concerns this period astir imaginable information vulnerabilities successful the company's chips. Nvidia said its products bash not person "kill switches and backdoors" built into them.

Several reports this period person suggested that the Chinese authorities has urged section companies not to usage Nvidia chips.

Huang has argued that Nvidia should beryllium allowed to merchantability its chips to China, truthful that the country's AI is built connected American exertion and home tech giants similar Huawei don't capable the void.

That connection appeared to get done to Washington. In July, erstwhile the H20 was approved for export again, U.S. Commerce Secretary Howard Lutnick told CNBC that the determination was allowed due to the fact that Nvidia would not beryllium giving implicit its champion technology.

"We don't merchantability them our champion stuff, not our 2nd champion stuff, not adjacent our 3rd best," Lutnick said.

However, the Financial Times reported connected Thursday that these comments were seen arsenic "insulting" by Chinese officials and that section regulators are moving to dissuade home firms from buying the H20.

A study by the The Information connected Friday said that Nvidia has asked immoderate of its constituent suppliers to halt accumulation related to the H20 graphics processing units.

The company's shares were down 1.34% successful premarket trading astatine 5:53 a.m. E.T.

- CNBC's Dylan Butts contributed to this report.