Nvidia hasn't made a cent in China lately - and might not need to given $120 billion profit
The Register
February 26, 2026
AI-Generated Deep Dive Summary
Nvidia, a leading GPU manufacturer, has seen little to no revenue in China despite the Trump administration lifting export restrictions on its H200 AI accelerators earlier this year. The company’s CFO, Colette Kress, revealed that Nvidia’s Q1 2027 revenue forecast excludes any Chinese datacenter income, as Beijing has yet to grant approval for these sales. This standoff highlights ongoing tensions between the U.S. and China in the tech sector, with Kress warning of potential long-term disruptions if American tech companies fail to engage global markets, including China.
The article also delves into Nvidia’s ambitious plans to expand its presence in space-based datacenters. CEO Jensen Huang discussed both the challenges and opportunities of deploying GPUs in orbit, emphasizing their potential for high-resolution imaging and AI applications. While Huang acknowledged the current economic drawbacks of space-based computing—such as energy efficiency and heat dissipation issues—he argued that these limitations could improve over time.
Despite Huang’s optimism, some industry experts remain skeptical. Gartner analyst Bill Ray dismissed the idea as “peak insanity,” citing poor economics and high costs. However, tech giants like Google and Amazon are also exploring space-based computing, with figures like Jeff Bezos and Elon Musk expressing strong interest in orbital datacenters. Nvidia’s foray into space underscores a broader industry trend of innovation beyond Earth, even as it faces hurdles in China.
For readers interested in tech, this story highlights the intersection of geopolitics and technology, as well as the potential for groundbreaking advancements in space-based AI. The ongoing saga of Nvidia’s H200 sales in China and its push into space underscores both the challenges and opportunities facing global tech leaders.
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Originally published on The Register on 2/26/2026