Nvidia expands support for Chinese AI models as US-China rivalry intensifies

Chip giant Nvidia is expanding its support for Chinese artificial intelligence models as it seeks to gain an advantage over domestic chipmakers by optimising its hardware for the systems. The move comes as US lawmakers increasingly raise concerns about American companies adopting Chinese AI models, CNBC reported.

The chipmaker on Wednesday highlighted a “local AI initiative” focused on optimising hardware for leading open models, including DeepSeek's V4 Flash and Alibaba's Qwen 3.8. The initiative also covers AI systems developed by Google and Nvidia.

At the same time, Nvidia's filing with the US Securities and Exchange Commission (SEC), released alongside its second-quarter earnings, flagged potential business risks arising from possible White House restrictions on AI developed in China.

Chinese AI models have made significant advances in 2026, prompting greater adoption among developers worldwide, including in the US. Their growing popularity has also heightened concerns among lawmakers in Washington.

Open AI models have emerged as an important battleground in the escalating technological competition between the US and China. Unlike closed AI systems developed by companies such as OpenAI and Anthropic, open models can be downloaded, modified and hosted independently.

Their increasing capabilities and generally lower costs have raised concerns that Chinese AI models could become the preferred option for developers and businesses in developing countries.

Both Beijing and Washington are seeking to use policy measures to strengthen their positions in the technology race. A media report on Thursday said the Trump administration was considering additional tariffs on semiconductors made by US companies.

However, a White House official told CNBC that “unless officially announced by the Administration, any reporting about tariffs should be regarded as baseless speculation.”

Nvidia also said the US government was considering restrictions that could limit its ability to support “third-party applications and models built on open-source foundation models originating in China”.

The company reiterated that regulatory measures restricting its ability to provide products or services supporting applications based on models such as DeepSeek, Qwen or Kimi could have a material impact on its business.

Nvidia shares gained on Thursday after the company reported stronger-than-expected second-quarter results and issued revenue guidance above analysts' estimates. The chipmaker, which maintains a dominant position in advanced AI processors, has seen its stock gain more than 10% so far in 2026.

Nvidia is also not the only major technology company opposing greater US government intervention in open AI models. Microsoft, Meta, Palantir and more than 20 other companies joined Nvidia in July in urging policymakers to avoid “premature restrictions” on open-weight AI models.

“Providing support for models worldwide allows developers to build on the American tech stack,” an Nvidia employee, who asked not to be named as they weren’t authorized to share the information, told CNBC.

“Developers using popular American and Chinese models will choose the stack that the model is optimized for, making the need to optimize for the American stack critical,” they added.

Meanwhile, Chinese chipmakers, including Huawei with its Ascend processor family, and Alibaba have also been developing their own hardware optimisations for open AI models. In recent months, both companies have announced support for models including DeepSeek and Qwen, intensifying competition with Nvidia in the Chinese AI ecosystem.

“Developers will play a crucial role in building the winning AI ecosystem,” the Nvidia employee said. “China has one of the largest populations of developers in the world, creating open-source foundation models. Every model should run best on the U.S. technology stack, encouraging nations worldwide to choose America.”