Connect with us

Published

on

Photo illustration of Nvidia’s H20 chip.

Vcg | Visual China Group | Getty Images

Nvidia‘s H20 chips are likely to return to China, but tech experts don’t expect them to be met with the same fanfare in the market in light of new competition and regulatory scrutiny. 

The Trump administration last month gave Nvidia assurances that it would be permitted to resume sales of its H20 chips to China, after their exports had been effectively banned in April. It also announced a new “fully compliant” made-for-China chip.

The move was seen as a huge win for the company, which had flagged billions in losses due to the policy. But while the H20s might be returning to the Chinese market that doesn’t mean Nvidia will regain its former market share, analysts caution. 

In a recent report, global equity research and brokerage firm Bernstein forecast that Nvidia’s AI chip market share in China would drop to 54% in 2025, from 66% the year prior. 

This drop is only partly owed to complications with resuming chip supply, as Chinese AI chipmakers have been seizing more of the booming domestic market. 

“U.S. export controls have created a unique opportunity for domestic AI processor vendors, as they are not competing with the most advanced global alternatives,” Bernstein’s report said, noting growing prominence of Chinese players such as Huawei, Cambricon and Hygon. “The localization ratio of China’s AI chip market will surge from 17% in 2023 to 55% by 2027.”

China's desire for chip self-reliance is clear, but tech firms still don't want to rely on Huawei

Other analysts such as The Futurum Group CEO Daniel Newman were more bullish about Nvidia’s bounce back in China. However, he also flagged potential market share erosion from Nvidia customers that might have found success with Chinese rivals while the H20 controls were in place. 

It’s also worth noting that Bernstein’s predictions assume that broader U.S. chip restrictions will remain largely unchanged. That creates a dynamic where Chinese companies continue to develop and offer advanced chips, possibly eroding demand for outdated U.S. offerings.

Further easing?  

Ahead of rolling back the H20 restrictions, Nvidia CEO Jensen Huang had been lobbying for more access to China, claiming export controls were inhibiting U.S. tech leadership.  

While Trump administration officials had said the rollback was part of trade negotiations, analysts have echoed Nvidia’s basic argument that chip controls for the China market should be eased, thereby creating more dependency on U.S. tech offerings.

“The assumption is that by keeping U.S. technology companies in the China game, the U.S. can preserve and even grow its geopolitical leverage,” Reva Goujon, director at Rhodium Group, told CNBC. 

In a report last month, Rhodium Group said that this logic may see the administration shift to a “sliding scale” approach to export restrictions that could allow U.S. chipmakers greater access to China as Huawei and other Chinese chipmakers continue to upgrade.

However, while Chinese AI developers will be happy to have increased access to Nvidia chips, Beijing isn’t expected to slow its efforts to steer companies toward homegrown AI infrastructure, according to Goujon. 

She noted that the Cyberspace Administration of China’s recent summons to Nvidia was an obvious signal of the state’s intention to intervene in the local AI infrastructure market.

New Beijing scrutiny

According to the Cyberspace Administration of China, Nvidia met with Beijing officials on Thursday regarding national security concerns posed by the H20 chips, including potential backdoors that would allow parties in the U.S. to access or control them. 

Beijing’s move appeared to come in response, at least partially, to new laws proposed in the U.S. that would require semiconductor companies such as Nvidia to include security mechanisms and location verification in their advanced AI chips. Nvidia later denied that its chips have any “backdoors” that would allow external access or control. 

The move by Beijing was also likely an attempt to create some hesitation among Chinese AI developers looking to buy the new H20s, according to Futurum’s Newman.

“China wants to leave some levers in place to potentially restrict outside AI chips at some point down the line if and when it feels its homegrown technology is truly competitive,” Newman said. 

Beijing has previously restricted American chipmakers’ business in China amid periods of intense technology and trade tensions between the two countries. Micron Technology, for instance, failed a cybersecurity review in 2023 and was subsequently blocked from critical IT infrastructure.

“The continued complexity of China-U.S. trade relations could bring further complications [for Nvidia] as negotiations continue and as China attempts to cement its own AI strategy,” Newman added. 

Continue Reading

Technology

Figma’s stock sinks more than 20% after last week’s IPO pop

Published

on

By

Figma's stock sinks more than 20% after last week's IPO pop

Dylan Field, co-founder and CEO of Figma, appears on the floor of the New York Stock Exchange on July 31, 2025.

Michael Nagle | Bloomberg | Getty Images

Figma shares dropped 23% on Monday, cutting into the gains the design software company posted after hitting the market last week.

The stock dropped $27.50 to $94.50 as of midday. That’s down from a close of $122 on Friday.

Figma and top stockholders sold about 37 million shares at $33 per share late Wednesday, yielding around $412 million in proceeds flowing to the company. On Thursday, its first day of trading on the New York Stock Exchange, the stock more than tripled.

The initial reception shows a renewed appetite on Wall Street for high-growth technology companies after a historically slow stretch for initial public offerings.

Figma said in an updated IPO prospectus that it expects second-quarter revenue to increase about 40% from a year earlier. But unlike many technology companies that have gone public over the past several years, Figma has regularly posted profits.

Figma’s fully diluted valuation sits at approximately $56 billion, almost triple the amount Adobe agreed to pay in its 2022 acquisition offer. Regulators in the European Union and the U.K. opposed the deal, which the two companies called off in late 2023.

Dylan Field, Figma’s 33-year-old CEO, owns stock in the company worth more than $5 billion even after Monday’s slide.

Don’t miss these insights from CNBC PRO

Figma more than triples in NYSE debut after selling shares at $33

Continue Reading

Technology

Amazon lays off over 100 employees in Wondery unit as part of audio business restructuring

Published

on

By

Amazon lays off over 100 employees in Wondery unit as part of audio business restructuring

The logo for Wondery is displayed on a smartphone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Tuesday, Sept. 29, 2020.

Gabby Jones | Bloomberg | Getty Images

Amazon is laying off roughly 110 employees in its Wondery podcast division and the head of the group is leaving as part of a broader reshuffling of the company’s audio unit.

In a Monday note to staffers, Steve Boom, Amazon’s vice president of audio, Twitch and games, said the company is consolidating some Wondery units under its Audible audiobook and podcasting division. Wondery CEO Jen Sargent is also stepping down from her role, Boom said.

“These changes will not only better align our teams as they work to take advantage of the strategic opportunities ahead but, even more crucially, will ensure we have the right structure in place to deliver the very best experience to creators, customers and advertisers,” Boom wrote in the memo, which was viewed by CNBC. “Unfortunately, these changes also include some role reductions, and we have notified those employees this morning.”

Bloomberg was first to report on the job cuts.

The move comes nearly five years after Amazon acquired Wondery as part of a push to expand its catalog of original audio content. The podcasting company made a name for itself with hit shows like “Dirty John” and “Dr. Death.”

More recently, Wondery signed several lucrative licensing deals with Jason and Travis Kelce’s “New Heights” podcast, along with Dax Shepard’s “Armchair Expert.”

Amazon is streamlining “how Wondery further integrates” into the company by separating the teams that oversee its narrative podcasts from those developing “creator-led shows,” Boom wrote.

The narrative podcasting unit will consolidate under Audible, and creator-led content will move to a new unit within Boom’s organization in Amazon called “creator services,” he wrote.

Amazon’s audio pursuits face a heightened challenge from the growing popularity of video podcasts on Alphabet‘s YouTube, which now hosts an increasing number of shows.

Video shows require different discovery, growth and monetization strategies than “audio-first, narrative series,” Boom wrote in the memo to Amazon staffers.

“The podcast landscape has evolved significantly over the past few years,” Boom said.

WATCH: YouTube will surprise to upside for Alphabet

YouTube will surprise to the upside for Alphabet's earnings, says Tim Seymour

Continue Reading

Technology

Baidu plans to expand its robotaxis to Europe with Lyft deal

Published

on

By

Baidu plans to expand its robotaxis to Europe with Lyft deal

Cheng Xin | Getty Images

Baidu will bring its driverless taxis to Europe next year via a partnership with U.S. ridehailing firm Lyft, as the Chinese tech giant looks to expand its autonomous vehicles globally.

The robotaxis will initially be deployed in the U.K. and Germany from 2026 with the aim to have “thousands” of vehicles across Europe in the “following years,” the two companies said.

Lyft has had very little presence in Europe until last week when it closed the acquisition of Germany-based ride hailing company FreeNow, which is available in over 150 cities across nine countries, including Ireland, the U.K., Germany and France.

Deployment of the autonomous cars is “pending regulatory approval,” Lyft and Baidu said in a Monday statement. It’s unclear if Lyft will offer Baidu’s robotaxis via the FreeNow app or another product.

The partnership marks a continued push from Baidu to expand its robotaxis to international markets.

Last month, Baidu partnered with Uber to deploy its autonomous cars on the ride-hailing giant’s platform outside the U.S. and mainland China, with a focus on the Middle East and Asia, which will launch later this year. The partnership also covers Europe, though a launch date for the region has not yet been disclosed.

In China, Baidu has been operating its own robotaxi service since 2021 in major cities like Beijing, allowing users to hail an Apollo Go car through the app. Meanwhile, for Lyft, the deal could boost the firm’s presence in the region as it looks to take on rivals like Uber and Bolt.

Autonomous vehicles have become a big focus for ride-hailing companies which have looked to partner with companies that are developing the technology for driverless cars.

In the U.K., a market that Lyft is targeting, Uber this year partnered with self-driving car technology firm Wayve to launch trials of fully autonomous rides starting in spring 2026.

Continue Reading

Trending