Chinese AI and graphics chips flooded the country's domestic market in 2025, leading to a decline in Nvidia's chip dominance in the region and a boon for China's efforts to foment a local supply chain for AI compute power. With 41% of the Chinese AI server market now controlled by Chinese suppliers, Nvidia has even more reason to restart its shipments of H200 GPUs to the region, despite the bipartisan efforts of U.S. Senators to stop that in its tracks.

Although Nvidia still holds a commanding stake in the region, with a 55% market share for AI server hardware, that's a huge downturn from Nvidia's claimed peak of 95% in 2022, before the U.S. began applying sanctions to China and trade export restrictions to Nvidia.