US lawmakers warned NVIDIA regarding advanced chip sales in China. They allege the technology enhances Chinese military capabilities. The concern centers on NVIDIA's support for the AI startup DeepSeek, which lawmakers claim benefits China's military.
This introduces significant geopolitical and regulatory risk for the company. NVIDIA's AI chips face massive global demand.
The House Select Committee on China posted a direct statement on X. The Committee stated: "When Nvidia technology ends up powering China's military, that's not innovation; it's a security failure." This highlights the potential for further scrutiny or restrictions on NVIDIA's business in China, a key market.