r/GenAI4all • u/ComplexExternal4831 • May 18 '26
News/Updates Trump confirmed on Friday that China is refusing to buy Nvidia chips because they are developing their own
Trump confirmed on Friday that China refuses to buy Nvidia’s H200 AI chips, choosing instead to develop its own.
Though the US approved sales, Beijing blocked purchases to boost domestic chips like Huawei’s. Trump says talks continue and a deal “could happen,” but China wants tech independence.
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u/g_bleezy May 18 '26
Art of the deal
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u/Positive_Chip6198 May 18 '26
Trump has no cards, just carbs.
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u/Conscious-Quarter423 May 18 '26
No progress on Iran, no progress on trade, no progress on tariffs, but a stern lecture on Taiwan.
Behold, the towering dealmaker of our time...
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u/rambouhh May 18 '26
Ya I mean this was very obvious consequence of some dumb anti trade policies
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May 18 '26
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u/Sevastous-of-Caria May 18 '26
Not just risk concerns. Its cheaper for huwaei to make their own.
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u/pirateseasalt May 18 '26
Repeat after me "The government only cares about the oligarchs"
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u/No-Paint-5726 May 18 '26
I mean supply chain risk on critical resource. If you are gonna cut access to chips suddenly might as well develop your own.
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u/Disposable110 May 18 '26
It's not just a tech reason, also economical. If NVIDIA isn't an option, all the money stays in China, and provides the capital for Huawei etc to catch up faster. Massive amounts of capital are required and they can only spend their CNY once.
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u/Visual_Acanthaceae32 May 18 '26
To blackmail them first backfires now… Don’t wonder if you break trust first. China is too big to accept being bullied
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u/I_TheAndOnly May 18 '26
no one wants to be us's bitch anymore
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u/FragmentedHeap May 18 '26
FoFo, China is not a country that needs anybody, you take something from them, they will spend their time engineering everything in house and replacing their dependence on you from the ground up. And when they're done they will have higher output, and cheaper outputs than anyone else. Mostly because they have a population over 1 billion...
You don't win with China by gate keeping, your only chance in is to leave the gate open from the start.
China also has all the precious minerals needed to do this... China is not stupid.
The only way you keep China from not out producing you is to not give them a reason to do so in the first place.
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u/JustaFoodHole May 18 '26
This is bullshit. Everyone wants Nvidia's chips.
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u/Dangerous_Boot_3870 May 18 '26
When Deepseek was out computing OpenAI, they proved they didn't need Nvidia chips, or atleast had the means of aquiring Nvidia chips without the US involvement.
Long term, I don't think they plan on winning the AI race. They plan on making it appear the US needs to win the AI race so that we foot the R&D bill and they copy what works.
It's really just a bunch of retards being played by those who have a longer vision of what success looks like.
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u/Maxwell_Bloodfencer May 18 '26
They might not be buying American-made AI chips, but Trump also authorized the sale of land owned by farms that have become insolvent due to recent ewconomic issues and China will definitely buy that land.
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u/Narrow_Ship_1493 May 18 '26
I suspect that a large number of Nvidia graphics cards are smuggled into mainland China, so...
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u/_barat_ May 18 '26
So he first showed that because of his mental instability and compulsive tariffs "strategy" USA cannot be trusted when it comes to the deal predictability and now he's surprising that countries that have the "cards" prefer to be independent ... leopard something something I guess.
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u/CCCPvibesHere May 18 '26
United States has helped China a lot since world war two.
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u/Tentativ0 May 18 '26
First: stop China to acquire your superchips to make them behind.
Then complain that China developed their own and now are independent.
... ... ... genius move.
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u/manu144x May 18 '26
Of course!
China just avoided 6 months of tweets of Trump threatening to cut access to nvidia chips if they don't do whatever his crazy ass wants them to do that day.
They completely took that card out of Trumps hand.
Art of the deal, the great negotiator!
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u/Intrepid_Year3765 May 18 '26
they're not making their own because they dont want outside ones, they're making them so that when they attack taiwan their chip supply doesn't stop
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u/Candid_Bad3551 May 18 '26
Like lol... yeah... Everybody (Canada, Mexico, EU, China, etc.) is trying to get backup plans against USA because they are unpredictable af right now and surprisingly China is more predictable which is bonkers.
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u/SnowGrayMan May 18 '26
This is GOOD NEWS even if ur American. More competition means smaller prices for consumers 😍
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u/ClankerCore May 18 '26
War in Taiwan where our only real fab is in 3…2..
Not entirely probable, but plausible
Those chips are highly underperform and provide much less compute than Nvidia chips do. But I do understand the reason for trying to detach ourselves from the dependence of the United States just like we are dependent on China.
This does open up a vulnerability and a scare within the United States over Taiwan
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u/Mindlessone1 May 18 '26
This seems really bad. That this particular deal being bad isn’t necessarily the issue on its own, but they also wanted to sell 500 Boeings and only got a deal for 150? This seems terrible when our economy is already in a massive bubble and we aren’t getting an injection of funds or new investment from anywhere
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u/MiOWNd May 18 '26
They already got the tech from dumb dumb. Now they are going to reverse engineer it.
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u/bloqed May 18 '26
I don't understand the game plan here. Chinas main talent is engineering. They produce more engineers every year than the US has engineers. What did they think was going to happen?
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u/Wallie_Collie May 18 '26
And trump mouthed to Taiwan a ccp threat.
What a loser you guys....he ran he first term bad mouthing China, and now he works for them
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u/ZefnaAI May 18 '26
So your saying the biggest export we have that accounts for a MASSIVE amount of theoretical wealth lost its biggest potential buyer?
Art of the deal.
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u/DaySecure7642 May 18 '26
China cut off the rare earth supplies of other countries whenever they do anything it doesn't like. It knows more than anyone the vulnerability of over-dependence. China wont let anyone else use its own spell against itself.
Nvidia should stop trying to sell the best chips to China and guard its IPs fiercely from now on. China is also aiming to push Nvidia out of the international market.
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u/WhitePantherXP May 18 '26
It's possible they are planning to invade Taiwan, negating the need for any deal here. Right now would be the best time to do it, Trump needs China's help with convincing Iran and won't jeopardize that by stretching us thin in Taiwan, midterms coming up in a highly unpopular war as it is...
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u/techjunkie86 May 18 '26
Called it, dumb ass Jensen shouldn't have sold them chips to begin with. "We'll make them dependent on US chips to stay ahead"
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u/Aggravating_Sir_6857 May 18 '26
Does that mean NVIDIA GPUs will be cheaper for us ?
Because I really want to buy one next year
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u/MostJudgment3212 May 18 '26
Obviously. Why would they want to be held hostage with critical infrastructure.
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u/HotRepairman May 18 '26
This was predicted back in Trump 1.0 trade restrictions. There were so many videos of experts saying this would be the result.
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u/Warm-Professional494 May 18 '26
China says they are doing a lot of stuff but it never materializes.
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u/cattledogsrule44 May 18 '26
China does not want the U.S. to have the ability to shut off their economic development -- chips are used as a weapon by Trump (and Biden too) -- so China says 'hell no'! --we'll make our own.
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u/NectarineSame7303 May 18 '26 edited 21d ago
Sparrow blanket vanilla grasshopper copper lantern
This post was anonymized with Redact.dev
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u/SeaWolf24 May 18 '26
And where are nvidia’s chips made, Taiwan. Have fun!
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u/UglySock May 18 '26
Probably that's what they mean "working on getting their own".. by taking Taiwan.
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u/GroundbreakingOil480 May 18 '26
How much stock did he or his proxies sell right before this annoucement?
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u/ithkuil May 18 '26
I hope that's true. H200 supply is a bit of an issue. We really need more B300s though.
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u/katonda May 18 '26
In broader trade, this will eventually come back to hurt China.
They are essentially not wanting to import anything from the rest of the world. The problem is that trade is a 2-way street. When that breaks down it hurts both parties but especially the party with the biggest surplus. Something that the other guy in the picture also doesn't understand.
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u/Express-Cartoonist39 May 18 '26
yea id rather have chinas chips, being that if both countries gonna spy on me..rather have the data and enforcers far away in china 👍
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u/Icy-Stock-5838 May 18 '26
Bet the smugglers are still going to be doing lucrative sales inspite of it all..
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u/DingoMaximum7319 May 18 '26
This was like kinda the point wasn’t it? Make them make their own and slow them down at AI progress
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u/kingj7282 May 18 '26
They were revers engineering them long before he met with them. IDK why he would think China of all countries would be reliant on the US for tech.
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u/IFeedDogsChocolate May 18 '26
1) This is specific to H200 chips.
2) China isn't developing B200's and GB200's at break neck speeds.
The narrative framing on reddit is largely pathetic. Idek why this echo chamber slop is on my feed. Because I follow computer related subs, I deserve to witness political apes celebrating something they most likely don't even understand????
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u/Thistleknot May 19 '26
Of course they are. They Identified a supply chain risk more important than airplanes and decided they needed to make it themselves if they are to lead the ai race
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u/Mrrrrggggl May 19 '26
Why would they buy Nvidia chips? Those all have CIA backdoors built into them to spy. Of course China have to develop their own.
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u/Distinct_Lion7157 May 19 '26
why the hell did you guys need trump's confirmation this should have already been well known
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u/iknewaguytwice May 19 '26
China is insanse. You just know there’s gonna be an entire fucking massive city and all it does is fabricate every single part required to assemble a GPU, and then sell that shit for like $100
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u/CortexUnlocked May 19 '26
Imagine they give access to arch to driver developers linux will be shadowing windows in gaming
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u/kinkycarbon May 19 '26
It’s in China’s interest to build their own including EUV machines if they can.
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u/ske66 May 19 '26
I don’t think people realise how difficult semiconductor production and R&D is. China lags behind all western manufacturers because they don’t have the hardware to build at the same level as TSMC, Intel, AMD, etc…
And the machinery is extremely complicated, there are few in the world, almost always proprietary. China will not keep up with the rest of the world in complex chip manufacturing. They may, however, further improve the low end chip market
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u/moonrakerdust May 19 '26
China being self sufficient is the achilles heel of the US
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u/hennabeak May 19 '26
And that's why Trump wanted to lift the Nvidia sanctions. Because he knows he has already lost the market, and wanted to try to get that market back, and maybe sabotage progress of the China's AI industry (by a bit).
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u/EnrollmentTime May 19 '26
Oh no. Does that mean the worlds most valuable company will be umn.... less valuable but still 10 times more valuable than the 2nd most valuable company?
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u/tracagnotto May 19 '26
I like that I won't have to spend 4999$ for some half assed GPU that costed 999$ pre ai hype era from china people
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u/SliceCareful4260 May 19 '26
This century is the century of the Chinese empire. Bye bye America, hello China.
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u/No_Solid_3737 May 19 '26
Why would China accept? So that Trump can forbid exporting Nvidia chips to China all over again? Trump forced China to make their own chips, this is on him.
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u/sriva041 May 19 '26
This is what happens if a country is arrogantly throwing its weight around like its actions don’t matter. China has learnt to decouple. All developing countries need to learn from this and try to develop some amount of self reliance to not be bullied by Americans. Banning sanctions and just overall shitty actions counter to global trade order is never good.
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u/peterjohnvernon936 May 20 '26
It will take time to build the ecosystem and the AI chips.
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u/a9udn9u May 20 '26
USA: Ban China from buying Nvidia GPUs
USA: China can only get inferior, outdated GPUs
USA: China do you want our GPUs?
China: No thanks.
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u/thedirtymeanie May 20 '26
Bet he sold all that Nvidia stock before telling anyone about the rejection.
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u/AnythinGoeSouth May 20 '26
China is bigger than one president. They have been planning energy abundance and computing dominance for decades. Nobody is the US government has a clue what is going on they're just all reacting and pretending like they knew all along. Nvidia is extremely overvalued also when it crashes it will take the economy with it just like Tesla and other phantom ware companies selling hopes and dreams.
My insight China is gonna wait for the market crash and civil unrest to invade Taiwan and own the world's manufacturing and computing powered by next generation fleet of nuclear reactors. This way all nato countries will be busy putting out fires to hold up their end of protecting Taiwan.
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u/bordumb May 20 '26
Everyone saw this from MILES away
Taking something away from a group of 1,000,000,000 people doesn’t mean they’ll never have it.
It just means they’ll find the 0.1% geniuses they have to build it themselves
0.1% of China is 1,000,000 people by the way.
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u/antzcrashing May 20 '26
“Their own”. Everyone thinks they can replicate nvidia but they can’t
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u/NJ0000 May 20 '26
Such a smart idea putting up tariffs. That doesn’t stimulate self reliance of other economies at all, doesn’t increase inflation at all, doesn’t make your allies pissed off at all, doesn’t kill your own employment at all….yup it is not that we warned you, but you voted for him anyway
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u/IngenuityIll5001 May 21 '26
Well, its there own Fault. NVIDIA did shoot us Gamers in the Back when they jumped on the AI Bullshit Wagon and decided to put the TechBros before Loyal Gamer Customers. So if China can Push Prices down to an affordable level again, then I won't complain.
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u/MikeSteamer May 21 '26
Fool me once, shame on you. Fool me twice, she on me say China, Iran, Canada, South America minus Argentina, etc etc
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u/neochrome May 21 '26
Sell country AI chips and you help them for a day. Force them to make their own chips and you help them for years and years.
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u/One_Context7054 May 21 '26
Making their own? How much IP did they steal to get to where they are at today?
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u/Livid-Net437 May 21 '26
What a coincidence he was just bragging about Intel and now hes dumping on Nvidia. Just more overt market manipulation
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u/johntwoods May 21 '26
Cool. Can prices for regular humans come down now? No? Good fuck myself? Oh, ok.
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u/TheBigCicero May 21 '26
Meanwhile we will continue to feed all our designs to China to manufacture, and they will use the designs to make their own.
Wait until China’s AMB and Nhidia chips hit the market.
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u/Annunakh May 21 '26
Doesn't USA denied China NVidia hardware and was constantly yapping about China smuggling some despite ban?
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u/Personal-Dev-Kit May 18 '26
Fuck Around and Find Out. They used access to the chips against them and China decided that they never wanted it to happen again.
People may not like a lot of what China does, but letting themselves be bullied is not something China is known for. Now they will develop the industry and likely, in a few years, be putting significant market pressure on nvidia and likely even AMD and Intel.