Nvidia (NASDAQ: NVDA) shares jumped 7% on Thursday after its updated sales forecast eased concerns that the AI spending boom may be losing momentum. The move followed Nvidia’s fiscal second-quarter 2027 report, in which management issued a revenue outlook that pointed to continued strong demand, a sign investors were still willing to give the company the benefit of the doubt as AI infrastructure spending remains a key theme across the sector.

The stock’s rise also reflected Nvidia’s effort to win over AI developers using Chinese models. On Wednesday, the company said it was improving support for DeepSeek V4 Flash, Alibaba Group (NYSE: BABA) Qwen 3.8, models from Alphabet (NASDAQ: GOOGL) subsidiary Google, and Nvidia’s own software.

Nvidia adjusts its platform for Chinese AI as U.S. officials consider new limits

Chinese AI models have advanced rapidly in 2026, and more developers around the world are using them. Rather than ceding ground to Chinese hardware makers, Nvidia is adapting its chips and software to keep developers inside its ecosystem. Huawei, which makes Ascend processors, and Alibaba have already introduced support for DeepSeek, Qwen, and other open models.

Nvidia described the effort as a “local AI initiative with optimizations for top open models.” The broader goal is to keep developers on American computing systems even when the model they choose was created in China.

An Nvidia employee allegedly told CNBC, “Providing support for models worldwide allows developers to build on the American tech stack.”

The employee added, “Developers using popular American and Chinese models will choose the stack that the model is optimized for, making the need to optimize for the American stack critical.”

Nvidia is also opposing early federal regulations on open-weight artificial intelligence. Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), Palantir Technologies (NASDAQ: PLTR), Nvidia, and more than 20 other companies signed a July letter urging authorities not to impose “premature restrictions” on AI models that firms can download, modify, and operate.

At the same time, Nvidia has acknowledged that politics could create challenges. In its most recent SEC filing, the company warned that White House regulations targeting AI created in China could hurt some parts of its business.

The employee also said, “Developers will be very important in building the winning AI ecosystem. China has one of the largest populations of developers in the world, creating open-source foundation models. Every model should run best on the U.S. technology stack, encouraging nations worldwide to choose America.”

Nvidia’s receivables surge as a possible Hugging Face deal would broaden its software reach

The quarterly report also included another figure drawing market attention: Nvidia’s net accounts receivable rose about 63% between January and July, from $38.5 billion to $63.1 billion. That means the company has recorded far more sales for which customers have not yet paid.

D.A. Davidson tech research head Gil Luria told CNBC, “It’s worth keeping an eye on.” Luria added, “We have to pay close attention, because the numbers are so big and they’re making really big commitments way out into the future.”

Wall Street banks expect the total to rise further. Bank of America (NYSE: BAC) projects Nvidia’s receivables will reach about $71 billion in January 2027, then $113 billion in 2028 and $147 billion in 2029. From 2027 through 2029, that would represent growth of around 107%.

Morgan Stanley (NYSE: MS) has a higher estimate. It expects the figure to rise from about $78.6 billion in January 2027 to $171 billion in January 2029, equal to roughly 117% growth.

Nvidia’s receivables are also concentrated among a small number of buyers. The company said five direct customers accounted for 70% of total receivables, with large cloud providers making up most of that group. A year earlier, three direct customers accounted for 56% over the same period.

Meanwhile, Nvidia reportedly agreed yesterday to pay $12.9 billion for the open-source AI platform Hugging Face, according to someone with direct knowledge of the deal. Business Insider separately reported that Nvidia had been “in talks” to buy Hugging Face.

Developers use Hugging Face to share, test, and build with open-source AI models. If the deal goes through, Nvidia would gain control of a major platform at the center of that activity. It would also move the company further beyond its core GPU business and deeper into software, where developers decide which models, tools, and computing systems they want to use.