Overview

• Nvidia acknowledged zero H20 sales to China in Q2 and said it expects none in Q3, citing geopolitical issues disclosed on its earnings call.
• Chinese regulators have warned that the H20 poses security risks and questioned Nvidia executives, prompting companies to favor local suppliers.
• Cambricon’s market value roughly doubled this month to about Rmb580 billion as investors backed its software‑compatible AI chips; the firm reported a Rmb1 billion first‑half profit and is receiving expanded SMIC capacity, according to reports.
• Beijing’s “AI Plus” policy and a new chip‑model alliance are accelerating domestic GPU efforts across Huawei and startups including Moore Threads, Biren, Enflame, MetaX, and Hygon, though analysts say the eventual market leaders remain uncertain.
• Despite restrictions, reporting points to ongoing black‑market inflows of advanced Nvidia GPUs into China, with U.S. prosecutors announcing charges tied to alleged smuggling via Malaysia and Singapore.