# Reflection AI CEO warns Chinese labs will sell chips with free models against Nvidia

Digest AI · Policy & Regulation · published 2026-11-03T09:39:00Z

Canonical: https://digestai.news/story/reflection-ai-ceo-warns-chinese-labs-will-sell-chips-with-free-models

## Summary

Reflection AI co‑founder and CEO Misha Laskin said that Chinese laboratories that distribute open models abroad will also begin selling their own chips and data‑center infrastructure. He described the models as “Trojan horses” that bring the “car” – the chips – to customers in the Middle East, other Asian countries, Brazil and elsewhere.

NVIDIA has already excluded China from its fiscal outlook, noting that revenue from China, Hong Kong included, fell to $19.7 billion in fiscal 2026 from $25.0 billion. The company’s H200 sales in the July quarter were less than 1 % of its $89 billion data‑center revenue. Laskin warned that the cheaper Chinese compute could hurt NVIDIA’s growth and pricing once these models are bundled with chips outside the US and China, which account for about a fifth of NVIDIA’s fiscal 2026 revenue.

The CEO’s remarks raise a national‑security concern that allied nations may become locked into Chinese infrastructure, potentially impacting NVIDIA’s sales and the broader AI supply chain.

## Key points

- Reflection AI CEO warns Chinese labs will bundle chips with free models
- NVIDIA’s China revenue fell to $19.7 billion from $25.0 billion in fiscal 2026
- Chinese compute could hurt NVIDIA’s growth and pricing after fiscal 2028

## Why it matters

The warning highlights a potential shift in the AI hardware market that could reduce NVIDIA’s sales and influence global supply chains, raising national‑security concerns for allied nations.

## Sources

1. [AI CEO Warns Chinese Labs Will Use Free Models to “Start Selling Chips” Against Nvidia](https://finance.yahoo.com/technology/ai/articles/ai-ceo-warns-chinese-labs-173925671.html) (finance.yahoo.com, 2026-11-03)

## Cite

Digest AI, "Reflection AI CEO warns Chinese labs will sell chips with free models against Nvidia", 3 November 2026, https://digestai.news/story/reflection-ai-ceo-warns-chinese-labs-will-sell-chips-with-free-models

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