The Trump administration is using the G20 meeting in North Carolina to urge global economies to avoid creating new AI regulatory bodies. Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang and OpenAI CEO Sam Altman are set to address ministers on Wednesday.

Washington is promoting a non-binding framework called the Carolina Principles. White House tech adviser Michael Kratsios stated that policymakers should favor sector-specific rules and industry collaboration on testing rather than establishing new oversight organizations.

Exporting the American AI Stack

The administration is actively pushing the American AI technology stack overseas. President Donald Trump created the American AI Exports Program last year to promote U.S. chips, cloud services, and models abroad. Diplomats are instructed to help partner countries create "pro-innovation" regulatory environments for American AI.

Kratsios recently described American AI as "the gold standard" during a pitch in India. He promoted U.S.-backed financing for countries building infrastructure on American technology.

Nvidia’s Sovereign Demand

Nvidia reported $89 billion in data center revenue last quarter. This figure represents an 117% increase from a year earlier. CFO Colette Kress cited sovereign customers as a key driver of this growth.

The expansion of government-backed AI projects globally implies increased demand for data centers and computing power. This directly supports demand for Nvidia’s chips.

Competing Global Frameworks

China is pursuing a different approach to global AI governance. In July, 29 countries signed an agreement to establish the World AI Cooperation Organization. This Shanghai-based body focuses on global AI governance, contrasting with Washington’s advice against new regulators.

Europe is also moving toward stricter regulation. The European Commission began enforcing new AI Act transparency rules on Aug. 2. Google DeepMind co-founder Demis Hassabis addressed ministers by video, calling for a U.S.-led body to test powerful AI systems before release.

Market Sentiment

Traders on Polymarket assign Nvidia a 77% chance of ending 2026 as the world’s largest company by market cap. Apple holds a 14% probability, while Alphabet has 9%. This betting activity reflects confidence in Nvidia’s expansion beyond hardware into software and cloud partnerships.

What the Numbers Show

Nvidia’s 117% revenue growth in data centers coincides with explicit U.S. government efforts to export its technology stack. The CFO’s identification of sovereign customers as a driver suggests that geopolitical policy is directly translating into corporate revenue streams.

NVIDIA Corp (NASDAQ: NVDA) has invested $3.5 billion in convertible bonds issued by MediaTek, deepening a strategic partnership that spans data centers, PCs, and vehicles. The move strengthens NVIDIA’s position in the growing custom AI chip market.

Expanding Into Custom AI Chips

MediaTek will offer NVIDIA’s NVLink Fusion technology to customers developing their own AI processors. This allows those chips to connect with NVIDIA’s broader AI infrastructure without requiring customers to build every surrounding component.

Customers can design the computing portion that differentiates their chips while NVIDIA and MediaTek provide technology covering connectivity, memory, manufacturing, packaging, and large-scale system deployment. This approach keeps NVIDIA involved even when cloud companies choose internally designed processors instead of NVIDIA GPUs.

MediaTek is expanding beyond its core smartphone-chip business into custom chips for data centers. The company previously stated its custom AI chip business could generate $2 billion in revenue this year, with a market opportunity of up to $80 billion by 2027.

This expansion increases competition with Broadcom Inc (NASDAQ: AVGO), a major provider of custom chips to large technology companies.

What the Numbers Show

The potential market size for custom AI chips highlights the scale of the opportunity MediaTek and NVIDIA are targeting. With a projected $80 billion market by 2027 against an expected $2 billion revenue contribution from this segment this year, the custom chip business represents a significant growth vector for MediaTek beyond its traditional smartphone operations.

Partnership Extends To PCs And Cars

NVIDIA and MediaTek will continue developing chips for PCs and other local AI systems. Their existing work includes the chip powering NVIDIA DGX Spark, with plans for additional products for consumer PCs.

The partnership also extends to vehicles, where MediaTek combines its automotive chips with NVIDIA’s AI and graphics technology. NVIDIA CEO Jensen Huang said the companies are building platforms that bring NVIDIA computing into new markets while allowing customers to create differentiated AI systems at large scale.

Market Reaction

NVIDIA shares were down 1.15% at $218.24 during premarket trading on Tuesday.