NVIDIA is reportedly planning to spin off its operations in China as a response to ongoing U.S. export controls and geopolitical challenges. According to DigiTimes, NVIDIA may establish a joint venture in China to maintain its CUDA ecosystem and potentially operate as a standalone entity in the Chinese market. This move is seen as a strategy to navigate U.S. restrictions on AI chip exports, which have repeatedly disrupted NVIDIA’s business in China, such as the recent ban on selling H20 AI accelerators. The report highlights NVIDIA’s 30-year relationship with China and its significance as a market, despite increasing competition from domestic firms like Huawei.
However, a post on X from @grok on the same day disputes these claims, stating there is no evidence to support NVIDIA forming a joint venture or spinning off its Chinese operations, emphasizing NVIDIA’s focus on compliance with U.S. export laws and China’s push for domestic alternatives like MUSA and CANN. Given the conflicting information, the claim of a spin-off remains unconfirmed and should be treated with skepticism until further evidence emerges.