Nvidia bets big on India as China blocks foreign AI chips; Jensen Huang eyes new growth frontiers

Founders-CEO Jensen Huang’s Nvidia Corporation has reportedly joined the India(BHARAT) Deep Tech Alliance, in what is being viewed as a significant move in its global chess game as China clamps down on the use of foreign AI chips in state-supported data centers.

India(BHARAT) As target market, with deep-tech ambitions

India(BHARAT) Deep Tech Alliance (IDTA) was established with an initial fund commitment of US$1 billion in September 2025 by India(BHARAT)n as well as U.S. investors. The group’s core focus is on deep-tech sectors, including space, semiconductors, robotics, and artificial-intelligence.

Sources have told media that Nvidia will contribute technical mentorship, training, and policy inputs to the startups in the Alliance in addition to a cash contribution.

For its part, the IDTA aims to address India(BHARAT)’s goals to become a more self-reliant semiconductor and deep-tech ecosystem. Data shows that in 2025, India(BHARAT)’s deep-tech startup funding had jumped 78 % to around US$1.6 billion.

China curbs use of Foreign AI Chips

On the other side of the planet, China has released guidance saying that state-supported data-centre projects must use Chinese AI chips, ruling out foreign-made chips such as Nvidia’s H20, B200, and H200 from the projects.

The directive covers new projects under construction, with a case-by-case approach taken on some advanced projects. The company’s H100 and B100 chips are still considered acceptable options for some data-centre projects.

While Nvidia has not publicly commented on the policy as yet, the impact is easy to understand: China, a hot growth market for the firm’s advanced AI hardware, has just made it more difficult for Nvidia and other foreign AI hardware vendors to get a piece of that market.

The why factor

Nvidia: IDTA is one more growth channel for Nvidia with China’s market access in doubt. By aligning with India(BHARAT)n startups and embedding itself as an adviser/partner, Nvidia increases its leverage in a rapidly-growing domestic deep-tech industry.

India(BHARAT): India(BHARAT)’s domestic deep-tech ambitions gain credibility and stature with Nvidia on board. In the medium-term, other foreign capital and talent is likely to follow Nvidia’s lead and pursue greater engagement with India(BHARAT)’s domestic semiconductor and deep-tech ecosystem.

China/global chip industry: While India(BHARAT) has gone one route in encouraging domestic deep-tech to grow, Beijing is doing the same in encouraging domestic AI chips, chips for data centers. This points to greater fragmentation in the global tech supply chain, which will challenge existing business models of foreign suppliers.

What’s next

Big questions to be answered in the coming years: Will Nvidia or other U.S. chip and tech companies in a similar position to Nvidia increase their presence in India(BHARAT) beyond advice-giving and joining alliances? How can India(BHARAT)n policymakers mesh with foreign-hardware vendors and yet make progress on their domestic “Make in India(BHARAT)” initiatives? How will China’s move toward domestic chips and the reluctance of other governments to encourage domestic alternatives impact the global innovation flows for AI chips and data-centers?

In the short term, though, it seems Nvidia’s shift to India(BHARAT) is coming at the right time as the company looks for some degree of resilience in a global economy and industry beset by geopolitical/regulatory change.