White House mulls CFIUS review of Tencent’s 28% stake and Nvidia Blackwell chip deal
The Treasury-led CFIUS is evaluating whether to force divestment of Tencent’s 28% stake in Epic Games and stakes in Riot and Supercell over data-access concerns, potentially restricting its use of Nvidia’s Blackwell AI chips acquired via a Japan cloud partnership in December. Any ruling could curb Nvidia’s AI chip revenue.
1. CFIUS Review of Tencent’s Gaming Stakes
The Committee on Foreign Investment in the US has reopened scrutiny of Tencent’s holdings in Epic Games (28% stake), Riot Games and Supercell, assessing whether these investments pose data-security risks for American users. Agencies remain divided on whether to force divestiture or impose strict data-controls.
2. Nvidia Blackwell AI Chips and Tencent Cloud Deal
In December, Tencent acquired Nvidia’s latest Blackwell AI chips through a Japan-based cloud partnership to accelerate its gaming and AI services. This deal marked one of Nvidia’s largest AI chip exports to a Chinese-affiliated cloud operator since export controls tightened.
3. Potential Impact on Nvidia’s AI Revenue
A CFIUS decision to limit or unwind the chip arrangement could reduce Nvidia’s AI-focused revenue stream and complicate its China market strategy. Nvidia may need to seek alternative buyers or expand into other regions to offset potential losses.