Nvidia chief executive Jensen Huang has voiced disappointment following reports that Beijing has ordered major Chinese technology companies to stop purchasing the U.S. chipmaker’s world-leading semiconductors. The news underscores how the company, now the world’s most valuable by market capitalization, has become a central figure in the intensifying technology rivalry between the United States and China.

Speaking on Wednesday, Huang stressed that Nvidia’s advanced chips, which have become critical to powering generative artificial intelligence systems, are in high demand globally and China remains a crucial market. “We are disappointed to hear of these reports,” he said, responding to claims that Beijing has restricted purchases from Chinese firms.

Nvidia has played a pivotal role in driving the AI revolution, with its graphics processing units (GPUs) now considered essential for training and running advanced AI models. To maintain access to the Chinese market despite U.S. export restrictions, the company had developed modified versions of its high-performance chips for sale in China. Reports that these chips may now face barriers highlight the growing difficulty of navigating political and regulatory challenges across both sides of the Pacific.

The United States has already imposed restrictions on the export of Nvidia’s most powerful AI chips to China, citing national security concerns and the risk of military applications. China, in turn, has sought to strengthen its domestic semiconductor industry while also signaling resistance to Western technology dominance.

Industry analysts say the reported move could have significant consequences for Nvidia, which has long regarded China as one of its largest markets for AI and data center technology. At the same time, the company continues to benefit from surging demand in other regions, with global interest in AI keeping its sales and market value at record levels.

The reported ban reflects the growing complexity of U.S.-China relations, where technology, national security, and trade interests increasingly collide. For Nvidia, the world’s top AI chipmaker, the challenge now lies in balancing innovation and business growth with the geopolitical realities that continue to reshape the global technology landscape.