Reuters Exclusive: Over $3.2 Billion in Chinese AI Projects Still Rely on Nvidia's Restricted Chips; Huang's Exit May Weaken Lobbying Leverage

• Dispatched: Nov 13, 2026 · 12:08 ET (17:08 UTC)

One-sentence summary: A Reuters review of more than 150 Chinese public documents found AI computing projects worth over 23 billion yuan (about $3.2 billion) still being built around Nvidia's restricted H100, H200 and H800 chips, contradicting Nvidia's claim that export controls have shut it out of China's data-centre market; Huang's resignation may weaken its lobbying leverage as Congress presses for tighter controls.

Verification status: ⚠ Reuters exclusive investigation of more than 150 public procurement and construction documents (Single-source / Unconfirmed) — China's commerce ministry and Nvidia did not respond to requests for comment, and the projects have not been linked to Megaspeed or the allegations involving Huang; not yet confirmed by official sources

Core Facts & Consensus Delta:

Reuters published the exclusive at 03:35 ET / 08:35 UTC on 2026-11-13 (updated 04:22 ET / 09:22 UTC). Its reporters examined more than 150 Chinese procurement notices, investment plans, construction contracts and corporate disclosures, identifying planned investments, signed contracts and completed installations worth over 23 billion yuan (about $3.2 billion) built around restricted Nvidia H100, H200 and H800 processors. Reuters states the figure covers buildings, power systems and other infrastructure, not chip purchases alone.

The projects stretch from coastal technology hubs to remote western provinces, reaching beyond China's largest tech firms into local government-backed ventures, universities and regional computing centres. A facility in northwestern Gansu was expected to install thousands of Nvidia chips before year-end, though it is unclear whether they ever arrived.

For comparison: Nvidia says US export controls have effectively shut it out of China's AI data-centre market, Huang said last year its share there had fallen from 95% to zero, and the company has excluded China data-centre revenue from its forecasts. Yet IDC data cited by Reuters in October put Nvidia at 34% of Chinese AI-accelerator shipments in the first half of 2026. Reuters notes the two figures measure different things and do not establish how the restricted hardware reached Chinese users.

Supply-Chain & Market Read-Through: The numbers shift the enforcement gap from who buys the chips to who ultimately uses the computing power. Sunny Cheung of the Jamestown Foundation told Reuters Washington must stop focusing on the surface buyer and start examining the end user and the purpose. Washington began restricting Nvidia's advanced AI processors in 2022, later tightened controls on modified chips built for China including the H800, and in January 2026 moved to review H200 export licences for eligible Chinese customers individually, subject to conditions.

Huang's resignation on November 12 raises the policy stakes: Reuters notes his departure could weaken Nvidia's lobbying leverage as lawmakers press for tighter controls, with Congress building consensus on restricting chip exports to China and advancing remote-access security legislation. Megaspeed has denied illegally diverting chips to China; Nvidia's board-led independent investigation said it had no reason to believe company secrets or US national security were compromised, and no public finding says Huang violated export-control laws.

For the memory and HBM chain, the read-through is indirect but concrete: if projects built around the H100, H200 and H800 keep advancing, the associated high-bandwidth-memory demand has not disappeared with the export-control statements. But if the remote rental channel closes or controls tighten further, Chinese demand could shift faster to domestic accelerators, changing how HBM capacity is allocated. The $3.2 billion figure includes infrastructure and cannot be converted directly into chip or memory purchases.

Next Catalysts & Watchpoints:

• 2026-11-17, after the close: Nvidia fiscal Q3 results (call 17:00 ET / 22:00 UTC) — watch management's commentary on China and the impact of controls
• 2026-11-18: Huang's scheduled closed-door House briefing; Anthropic IPO pricing the same day
• 2026-12-01–03: Huang and Commerce Secretary Lutnick testify in public before the Senate Banking Committee (House committees hold closed depositions on December 1–2 first)
• 2026-11-25 08:30 ET / 13:30 UTC: October PCE price index; 2026-12-08–09: FOMC meeting

Sources:

• Reuters (via Y'all 106.7): Huang Exit and US Scrutiny Imperil $3 Billion in Chinese AI Projects Reliant on Nvidia (Published: 2026-11-13 03:35 ET / 08:35 UTC; updated 04:22 ET / 09:22 UTC)
• Reuters (via Mix 92.9): Huang Exit and US Scrutiny Imperil $3 Billion in Chinese AI Projects Reliant on Nvidia (Published: 2026-11-13 03:35 ET / 08:35 UTC; updated 04:22 ET / 09:22 UTC)

Information only, not investment advice.