NVIDIA Q2 financial report, strongly regulates that no payment is required to China s revenue 15%

NVIDIA announced its second quarter financial report early this morning, and responded to the Trump administration's previous proposal that "the sales of AI chips to China must be paid for 15% of the purchase." The company said the plan has not been legislated and therefore no credit is required to be paid for at this stage.

Financial Chief Colette Kress Additional notes that although NVIDIA continues to maintain communication with the US government, the company will not need to pay an additional 15% fee unless legally effective supervision documents appear.

NVIDIA's Chinese business was previously heavily impacted by export restrictions. Last year, the Biden administration banned high-efficiency AI chip sales, forcing the company to launch a reduced version of H20; however, in April this year, the Trump administration once again tightened regulations, making H20 completely unable to ship in China, resulting in a loss of US$4.5 billion in the first quarter.

NVIDIA also did not sell any H20 to China in the second quarter, and only shipped approximately US$180 million in inventory to one customer outside China. The company also admitted that if it weren't for local political interference, the second quarter would have expected to have $2 billion to $5 billion in H20 sales.

Currently, NVIDIA will focus on the new generation of Blackwell architecture and may launch customized versions such as B30A for the Chinese market. Executive Chairman Huang Renjun emphasized that China has a huge demand for AI. If it can successfully enter, it is estimated that it will create about US$50 billion in merchants for NVIDIA this year.

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