After pleading with the US government for months to allow sale of high-end Nvidia chips in China; CEO Jensen Huang now tells Shareholders: National security is …

Nvidia CEO Jensen Huang told shareholders that the chip giant will prioritise US national security over business opportunities. Speaking after Nvidia’s annual shareholder meeting, Huang said the chipmaker would not compromise if business interests conflicted with US security priorities.“National security comes first,” Huang said during a question-and-answer session following the meeting, CNBC reported. His remarks come after Nvidia repeatedly called for changes to US export restrictions on AI chips. At that time, he argued that limiting access to its AI chips to China could affect the company’s business. Washington has imposed export controls on advanced AI hardware since 2022 over national security concerns.

Nvidia CEO Jensen Huang says smuggled AI chips would face support challenges

Huang also addressed concerns about advanced Nvidia chips being smuggled into countries subject to US export restrictions, including China.“Advanced AI data centers are massive integrated systems that require trusted hardware, software, networking, and continuing support. Trying to cobble together data centers with some smuggled products is a dead end,” Huang said.He added that if Nvidia products were smuggled into restricted markets, the company would not provide technical support or repairs needed to operate those systems.Nvidia has developed China-specific AI chips to comply with US export rules. Huang said the US government approved export licenses for the company’s H200 chips, but Nvidia has not yet generated revenue from those products because it remains unclear whether Chinese authorities will allow imports.According to the company, China, including Hong Kong, accounted for about 9% of Nvidia’s fiscal 2026 revenue, which is quite lower than in previous years.During the annual meeting, Huang also discussed demand for AI infrastructure, saying the industry’s return on investment has become clearer as AI systems are increasingly used for software development and other commercial applications.“Nvidia systems may not be the cheapest to purchase, but Nvidia generates the lowest cost tokens, the highest token throughput, and the most revenues,” Huang said.Apart from this, he also reiterated Nvidia’s plan to return 50% of its free cash flow to shareholders through share buybacks and dividends over the coming years. The company reported more than $96 billion in free cash flow during fiscal 2026.Shareholders also approved Nvidia’s executive compensation plan in an advisory vote and re-elected all 10 members of the company’s board of directors. A separate shareholder proposal requiring company votes to pass by a simple majority was also approved, the report added.