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Nvidia has clarified that it is "simply leasing a new space for existing employees" in Shanghai, following a report that the US artificial intelligence chipmaker is working on a research and development center in the city.

According to a spokesperson, existing Nvidia employees need room to return to work after the COVID-19 pandemic. "The scope of work will remain unchanged," the Nvidia spokesperson said in a written reply to China Daily on Wednesday.

The Financial Times was the first to report Nvidia's plans to establish an R&D center in Shanghai, supporting the company's technical and compliance research.

However, Nvidia, responding to local media The Paper on Tuesday, said the company is not sending any GPU designs to China to be modified so as to comply with the current export controls.

Jensen Huang, CEO of Nvidia, has already visited China twice so far this year. Attending New Year parties at the company's Shenzhen, Beijing and Shanghai offices in January, Huang made another two-day visit to China in late April.

During the latest trip, he met Shanghai's mayor Gong Zheng.

Underlining China's importance to Nvidia both in terms of its large market size and sound industrial ecosystem, Huang affirmed Nvidia's commitment to the Chinese market and dedication to providing the best service. Huang also acknowledged Shanghai's role as an important R&D base for Nvidia, according to information released by the municipal government in the public domain.

Having been present in China for 25 years, Nvidia has hired over 4,000 employees in the country.

In an interview with CNBC in early May, Huang stated that China's AI market value could reach about $50 billion in the next two to three years. Missing out would be a "tremendous loss," he said, adding that selling to China would generate revenue, taxes and jobs for the United States.