Nvidia is optimizing its hardware for Chinese open AI models, including DeepSeek's V4 Flash and Alibaba's Qwen 3.8, aiming to stay ahead of domestic chipmakers. At the same time, an SEC filing tied to its second-quarter earnings warns that potential White House restrictions on China-developed AI could hurt its business.
Nvidia is bolstering support for Chinese artificial intelligence models in a push to beat domestic chipmakers to optimizing hardware for the systems. The chip giant highlighted a local AI initiative with optimizations for top open models, including DeepSeek's V4 Flash and Alibaba's Qwen 3.8, alongside systems from Google and Nvidia itself.
But an SEC filing linked to the company's second-quarter earnings also warned of business risks from potential White House restrictions on AI developed in China. The U.S. is mulling restrictions that would limit Nvidia's ability to support third-party applications and models built on open-source foundation models originating in China, the company said, reiterating messaging from previous earnings.
In the filing, Nvidia warned that any "regulatory control or other restriction that limits our ability to provide products and services" supporting apps built on models such as DeepSeek, Qwen or Kimi could have a material impact on its business.
Tariff report adds to the pressure
Both Beijing and Washington have looked to leverage political heft to gain an advantage, with a report emerging that the Trump administration is considering new tariffs on U.S. semiconductors. A White House official told CNBC that any reporting about tariffs not officially announced by the administration should be regarded as speculation.
Nvidia shares rose after the company reported better-than-expected second-quarter results and issued revenue guidance that topped estimates. The stock has risen more than 10% so far in 2026, with the company holding a near monopoly over the most advanced AI chips.
Industry pushes back on restrictions
Nvidia is not alone in campaigning against government intervention in open models, which can be downloaded, modified and self-hosted by companies. Microsoft, Meta, Palantir and more than 20 other companies joined the chip giant in a July statement urging policymakers to avoid premature restrictions on open-weight models.
Analysts point to 'growing influence'
Chinese AI models, which are increasingly capable and typically cheaper than American alternatives, could become the default for developing countries, some observers say. Daniel Remler, senior fellow at the Center for a New American Security, told CNBC that countries defaulting to Chinese AI technology may be more likely to align themselves politically with Beijing.
Nvidia's optimization of its hardware for Chinese AI models reflects their growing influence within the global AI ecosystem, Charlie Dai, vice president and principal analyst at Forrester, told CNBC. By optimizing for platforms such as DeepSeek and Qwen, he said, Nvidia is reinforcing its position as the preferred infrastructure layer for AI developers regardless of where leading models originate.
Source: CNBC
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