Nvidia CEO Urges AI Export Rule Revision Amid Global Competition and China's AI Advancements

Nvidia asks US government to ease AI GPU export rules, but Trump administration plans tighter controls

Nvidia CEO Jensen Huang has once again called the U.S. government to revise the previous administration's AI processors export restrictions, arguing that these regulations hinder American companies from fully participating in global markets, according to a report from Bloomberg. However, the current administration seems to disagree, as it plans to further restrict exports of AI GPUs so it can use them as bargaining chips when negotiating trade deals with other nations, according to Reuters. "I am not sure what the new AI Diffusion Rule is going to be, but whatever happens to be, it it really has to recognize that the world has changed fundamentally since the previous AI diffusion rule was was released," Huang said at the Hill and Valley Forum, where business leaders and lawmakers gather to discuss technology and national security, according to Bloomberg Podcasts. "We need to accelerate the diffusion of American AI technology around the world, so the policies and encouragement from the administration really need to be behind that." According to the AI Diffusion framework introduced by the Biden administration, access to advanced AI chips such as Nvidia's H100 is only unrestricted for companies based in the U.S. "Tier 1" nations (a group of 18 allied nations). Those located in "Tier 2" nations face annual limits, capped at roughly 50,000 units of H100-class processors, unless they obtain verified end user (VEU) approval. (However, firms from Tier 2 regions can import up to 1,700 units per year without requiring an export license -- these smaller purchases do not count toward the 50,000-unit national cap.) For countries under arms embargoes -- "Tier 3" -- including China, Russia, and Macau, nearly all shipments of advanced AI processors are effectively barred. The Trump administration is currently evaluating this tiered structure to enhance its clarity and enforceability. Nvidia has criticized Biden's AI Diffusion Rule, saying that restrictions of American GPU exports will support development and proliferation of competing hardware, software, and standards -- specifically those developed in China. Therefore, Nvidia and its CEO have been advocating for change. While the Trump administration agrees that change is needed, it looks like it may not be the change Nvidia and other American hardware developers are hoping for. Under the proposed revisions, the tiered model may be replaced by a global licensing regime involving formal agreements between governments. This would enable the U.S. to negotiate access on a case-by-case basis, giving the U.S. government more leverage in trade discussions. Officials are also considering a change to the volume of chips that can be exported without formal approval. Currently, shipments of less than 1,700 H100-class units can be made with only a notification; this threshold may be lowered to 500 units. Former U.S. Secretary of Commerce Wilbur Ross confirmed this approach is under consideration, though no decisions have been finalized, according to Reuters. If the new rules are applied, Nvidia's success will depend not on the capabilities and performance of its GPUs, but rather on trade deals inked between the U.S. government and other nations. Needless to say, at least some nations might prefer to deal with China's Huawei -- which is just behind Nvidia, according to Huang. "China is not behind anybody, China is right behind us, we are very, very close," Huang said. "There is no question that Huawei is one of the most formidable technology companies in the world, and they are incredible in computing, they are incredible in networking technology, and in software capabilities, all of the essential capabilities to advance AI. And they have they've made enormous progress in the last several years." Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.

Nvidia warns U.S. AI hardware export rules could backfire, empowering Huawei to define global standards

Nvidia strongly opposes the AI Diffusion Rule, warns that it poses risks to U.S. AI global dominance. When it comes to long-term prosperity in the high-tech world, it's all about setting standards. Intel once set the standard with x86, PCIe, and USB and now the vast majority of devices use these technologies in one way or another. Nvidia now enjoys its investments in the CUDA ecosystem and is setting the standard in AI compute in general. To a large degree, Nvidia's efforts made the U.S. industry the leader in AI. However, containing AI hardware in the U.S. will provoke rapid development of competing AI ecosystems that can eventually outperform the one developed in America. "We are at an inflection point: the United States needs to decide if it is going to continue to lead the global development and deployment of AI or if we are going to retreat and retrench," a remark by Nvidia's chief executive Jensen Huang (republished by Ray Wang reads) to the U.S. lawmakers reads. "America cannot lead by slowing down. If we step back, others will step in. And the global AI ecosystem will fragment -- technologically, economically, and ideologically." For now, Nvidia and its CUDA ecosystem set the standards for AI applications across the world, both for training and for inference. With products like GB200/GB300 NVL72 Nvidia can address companies that need on-premise AI deployments for their AI applications. Given the ubiquity of CUDA, such deployments are easy and relatively inexpensive. Nonetheless, Nvidia has domestic rivals, including traditional competitors like AMD and Intel as well as newcomers like D-Matrix and Tenstorrent. Most of their efforts are aimed at inference though, as Nvidia is the de facto king of AI training thanks to CUDA. Thanks to the omnipresence of CUDA, Nvidia leads in AI not only in the U.S., but also in Europe and China. The vast majority of China's high-tech giants -- Alibaba, ByteDance, Tencent, just to name a few -- use Nvidia hardware and virtually all European companies use Nvidia hardware. Meanwhile, when it comes to China, Nvidia has major rivals both on the hardware and platform sides. On the hardware front, Nvidia has competitors like Biren Technology, InnoSilicon, and Moore Threads. These companies are quite formidable competitors, even though for now their market share is negligible. All three companies use PowerVR GPU IP developed by the U.K.-based Imagination Technologies and have loads of experience with GPU development, according to Jon Peddie, the head of Jon Peddie Research. The founder of Moore Threads, Zhang Jianzhong (also known as Zhang Jian Zhong), previously worked at Nvidia: he was the general manager of Nvidia's operations in China. The founder of Biren Technology, Li Bing, previously worked at Huawei and also had experience at other tech companies. Co-CEO of Biren Technology is Allen Lee (also known as Li Xinrong), who used to be vice president and general manager of AMD's China R&D Center. He joined the startup in 2021 as co-CEO, and now he oversees organizational management and product design. "Li Bing's background and expertise in the tech industry likely influenced his vision for Biren Technology, which focuses on developing high-performance GPUs for various applications," Peddie told Tom's Hardware. But while Biren, InnoSilicon, and Moore Threads have rather good hardware, for now they lack an ecosystem that is comparable to Nvidia's CUDA. However, there is a company in China that can compete with Nvidia not only on the hardware side of matters, but also on the platform level: Huawei. Huawei has its Cloud Matrix 384 system, which it claims can outperform Nvidia's GB200 NVL72 rack-scale machine for AI. Perhaps more importantly, the company has its own AI-oriented, heterogeneous Compute Architecture for Neural Networks (CANN) platform designed specifically to use the potential of Huawei's HiSilicon Ascend AI processors. Just like Nvidia's CUDA, Huawei's CANN offers a complete suite of development resources such as runtime systems, model-building tools, and compilers. It works with both Huawei's MindSpore platform and widely-used AI libraries like TensorFlow and PyTorch, making it flexible for developers. The framework includes a broad range of tuned computational components to speed up model execution and is also compatible with ONNX Runtime, allowing it to run ONNX-based models efficiently on the company's Ascend accelerators for AI. Although CANN is a key part of Huawei's AI infrastructure, it has drawn criticism for being difficult to work with, mainly due to unstable performance, inadequate documentation, and reliability issues that complicate model training and deployment. Huawei has acknowledged these problems and is actively working to strengthen the platform and improve its usability. For now, imperfection of Huwei's CANN and significant efforts that are required to port programs from CUDA to CANN (several months and hundreds of developers) limit success of Huawei's hardware. However, if Nvidia's GPUs will be unavailable for Chinese and European buyers, they will at least consider Huawei, or perhaps Biren, Innosilicon, or Moore Threads hardware. This will not only decrease Nvidia's revenues by tens of billions every year and its market capitalization by hundreds of billions, but could also eventually make its competitors from China as trend setters in the AI segment, the company believes. "Regardless of how one feels about DeepSeek's open-source R1 model, it is a clear indication that innovation is moving rapidly around the world, with or without leading U.S. tech," the statement by Nvidia reads. "If U.S. platforms are absent, companies will turn to strategic competitors like Huawei to fill the gap. This is why leadership in AI depends not just on what we restrict -- but on what we enable. Ecosystems are essential. It is not just about who can build the biggest data center or train the most advanced model. [...]. One of Nvidia's key strengths is our global network of 6 million developers who build on our platforms. If we lose that ecosystem to our competitors, it will be almost impossible to get it back." The new U.S. export rules for compute GPUs -- known as the AI Diffusion Rule -- come into effect on May 15. Under the Biden administration's AI Diffusion framework, unrestricted access to high-end AI chips like Nvidia's H100 is reserved for companies in the U.S. and a select group of 18 allied countries classified as 'Tier 1.' Companies in 'Tier 2' nations are subject to an annual limit of approximately 50,000 H100-class GPUs, unless they secure verified end user (VEU) approval. They can still import up to 1,700 units per year without a license, and these do not count toward the national quota. However, countries listed as 'Tier 3' -- including China, Russia, and Macau -- are essentially blocked from receiving such hardware due to arms embargo restrictions. The Trump administration is now reviewing this tier system to make it more straightforward and enforceable, and is rumored to make limitations for Tier 2 nations even stricter. Not only will Nvidia cease to be able to sell its GPUs to China, which is one of its largest markets, but its Chinese customers will be forced to either use its GPUs in the cloud, or switch to processors developed in China, such as those designed by Huawei or one of the aforementioned companies. While this will slow down development of China's AI sector in the short term, it will give a strong boost for its AI hardware ecosystem in the mid and long-term future. Huawei already spends tens of billions of dollars on R&D every year. Once Huawei and others increase sales of their AI hardware, they will be able to invest more in development of their AI ecosystems, which will get more competitive against those developed by Nvidia and other American companies (such as AMD and Intel) than they are today. Having China as a fortress and being able to sell its hardware elsewhere, Huawei and other Chinese companies will compete against Nvidia and other American entities for European and Middle-East AI hardware markets. What's more important, they will be able to set standards of the AI market and that will not only reduce Nvidia's influence on such standards, but it will greatly reduce American influence on AI development. AI leadership is about more than market share, it is about strategic control over future governance models. "Today, the U.S. semiconductor industry is being pushed out of China, the world's largest market," the letter by Nvidia concludes. "On May 15th, if the AI Diffusion Rule comes into effect without significant changes, we will be forced to similarly retreat from the rest of the world." The U.S. has already seen the consequences of ceding technological leadership, when Huawei gained a dominant foothold in global 5G deployments by offering cheaper and faster-to-deploy infrastructure. This serves as a cautionary example of how losing control over foundational standards can shift both market power and geopolitical influence. Nevertheless, whether the current administration has learnt from similar past mistakes remains to be seen.

Nvidia CEO says Trump should revise AI chip export rules, Bloomberg News reports

April 30 (Reuters) - Nvidia (NVDA.O), opens new tab CEO Jensen Huang said he would like the Trump administration to change the regulations related to exporting AI technology from the U.S. for businesses to better capitalize on future opportunities, Bloomberg News reported on Wednesday. The administration is considering changes to a Biden-era regulation that restricts access to advanced U.S. artificial intelligence chips, including possibly eliminating a tiered system that determines how many chips countries can obtain, Reuters reported on Tuesday. The Framework for Artificial Intelligence Diffusion is set to take effect on May 15 and aims to limit the most powerful AI chips and certain model weights from companies like Nvidia to keep cutting-edge computing within the U.S. and its close allies. The White House and Nvidia did not immediately respond to Reuters requests for comment. "I'm not sure what the new diffusion rule is going to be, but whatever it turns out to be, it really has to recognize that the world has changed fundamentally since the previous diffusion rule was released," Huang said in a brief meeting with the media, according to the Bloomberg News report. Earlier in the day, Huang expressed confidence in the company's ability to manufacture chips domestically using the resources available within the U.S., according to an interview by CNBC. Reporting by Harshita Mary Varghese in Bengaluru Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Nvidia CEO Jensen Huang warns China is 'not behind' in AI

Nvidia CEO Jensen Huang said on Wednesday that China is "not behind" in artificial intelligence, and that Huawei is "one of the most formidable technology companies in the world." Speaking to reporters at a tech conference in Washington, D.C., Huang said China may be "right behind" the U.S. for now, but it's a narrow gap. "We are very close," he said. "Remember this is a long-time, infinite race." Nvidia has become key to the world economy over the past few years as it makes the chips powering the majority of recent advanced AI applications. The company faces growing hurdles in the U.S., including tariffs and a pending Biden-era regulation that would restrict the shipment of its most advanced AI chips to many countries around the world. The Trump administration this month restricted the shipment of Nvidia's H20 chips to China without a license. That technology, which is related to the Hopper chips used in the rest of the world, was developed to comply with previous U.S. export restrictions. Nvidia said it would take a $5.5 billion hit on the restriction. Huawei, which is on a U.S. trade blacklist, is reportedly working on an AI chip of its own for Chinese customers. "They're incredible in computing and network tech, all these central capabilities to advance AI," Huang said. "They have made enormous progress in the last several years." Nvidia has made the case that U.S. policy should focus on making its companies competitive, and that restricting chip sales to China and other countries threatens U.S. technology leadership. Huang called again for the U.S. government to focus on AI policies that accelerate the technology's development. "This is an industry that we will have to compete for," Huang said. Trump on Wednesday called Huang "my friend Jensen," cheering the company's recent announcement that it planned to build $500 billion in AI infrastructure in the U.S. over the next five years. Huang said he believes Nvidia will be able to manufacture its AI devices in the U.S. The company said earlier this month that it will assemble AI servers with its manufacturing partner Foxconn near Houston. "With willpower and the resources of our country, I'm certain we can manufacture onshore," Huang said. Nvidia shares are down more than 20% this year, sliding along with the broader market, after almost tripling in value last year. The stock fell almost 3% on Wednesday.

Nvidia CEO says being locked out of China AI market would be 'tremendous loss'

Nvidia CEO, Jensen Huang, speaks during an interview on CNBC's 'Power Lunch' on May 6, 2025. Nvidia CEO Jensen Huang said on Tuesday that China's artificial intelligence market will likely reach about $50 billion in the next two to three years, and that missing out on it would be a "tremendous loss." Huang said being able to sell into China would bring back revenue, taxes, and "create lots of jobs here in the United States." "We just have to stay agile," Huang told CNBC's Jon Fortt, in an interview alongside ServiceNow CEO Bill McDermott. The tech execs were in Las Vegas for ServiceNow's Knowledge 2025 conference. "Whatever the policies are of the government, whatever is in the best interest of our country, we'll support," Huang said. Nvidia is the leading provider of graphics processing units (GPUs), which have powered the AI boom and lifted the company's market cap to almost $3 trillion. Last month, the Trump administration restricted the shipment of Nvidia's H20 chips to China without a license. That technology, which is related to the Hopper chips used in the rest of the world, was developed to comply with previous U.S. export restrictions. Nvidia said it would take a $5.5 billion quarterly charge due to the restriction, the strongest sign so far that the company's historic growth could be slowed because of U.S.-China trade tensions. Later in April, Huang said at a tech conference in Washington, D.C., that China is "not behind" in AI, and that Huawei is "one of the most formidable technology companies in the world." Shares of Nvidia are down about 15% so far this year after almost tripling in 2023. The company is set to report earnings on May 28. Analysts expect to see revenue growth of 65% from a year earlier to $43.1 billion, according to LSEG. While Nvidia is still expanding much faster than its megacap peers, growth is slowing, as the company reported a revenue increase of more than 260% a year ago. "The world is right now hungry, anxious to engage AI," Huang said on Tuesday. "Let us get the American AI out in front of everybody right now."

China's new chip rules are a warning shot to US tech firms

Nvidia CEO Jensen Huang concluded his whirlwind 48-hour trip to China on April 19. During his visit, rumors swirled around Nvidia setting up a factory in the country. Media reports suggested that Nvidia was considering establishing a joint venture in China to maintain its CUDA ecosystem and potentially prepare to spin off its operations in China. Nvidia, however, dismissed the reports as completely false. Still, one message was clear: Huang's appearance -- trading his signature black leather jacket for a business suit -- signaled that despite US export restrictions, the company walking away from China just yet. Previously, Nvidia had developed the H20 chip specifically for the Chinese market. But in a fresh blow, the chip was recently added to the US export control list as Washington moves to limit China's access to advanced AI hardware. Despite having only 15-20 percent of the H100 chip's computing power and about 80 percent of the inference performance of the A100, the H20 remains the most powerful Nvidia chip Chinese AI companies can legally get their hands on.

Nvidia CEO Jensen Huang warns China is 'not behind' in AI

Nvidia CEO Jensen Huang speaks Tuesday at the Hill and Valley Forum at the U.S. Capitol.Kevin Dietsch / Getty Images Nvidia CEO Jensen Huang said on Wednesday that China is "not behind" in artificial intelligence, and that Huawei is "one of the most formidable technology companies in the world." Speaking to reporters at a tech conference in Washington, D.C., Huang said China may be "right behind" the U.S. for now, but it's a narrow gap. "We are very close," he said. "Remember this is a long-time, infinite race." Nvidia has become key to the world economy over the past few years as it makes the chips powering the majority of recent advanced AI applications. The company faces growing hurdles in the U.S., including tariffs and a pending Biden-era regulation that would restrict the shipment of its most advanced AI chips to many countries around the world. The Trump administration this month restricted the shipment of Nvidia's H20 chips to China without a license. That technology, which is related to the Hopper chips used in the rest of the world, was developed to comply with previous U.S. export restrictions. Nvidia said it would take a $5.5 billion hit on the restriction. Huawei, which is on a U.S. trade blacklist, is reportedly working on an AI chip of its own for Chinese customers. "They're incredible in computing and network tech, all these central capabilities to advance AI," Huang said. "They have made enormous progress in the last several years." Nvidia has made the case that U.S. policy should focus on making its companies competitive, and that restricting chip sales to China and other countries threatens U.S. technology leadership. Huang called again for the U.S. government to focus on AI policies that accelerate the technology's development. "This is an industry that we will have to compete for," Huang said. Trump on Wednesday called Huang "my friend Jensen," cheering the company's recent announcement that it planned to build $500 billion in AI infrastructure in the U.S. over the next five years. Huang said he believes Nvidia will be able to manufacture its AI devices in the U.S. The company said earlier this month that it will assemble AI servers with its manufacturing partner Foxconn near Houston. "With willpower and the resources of our country, I'm certain we can manufacture onshore," Huang said. Nvidia shares are down more than 20% this year, sliding along with the broader market, after almost tripling in value last year. The stock fell almost 3% on Wednesday.

'China is right behind us': Jensen Huang says we need to 'accelerate the diffusion of American AI technology around the world'

What do you get when you cross a giant global tech company with an overtly 'America-first' US administration? It looks like the answer is: Policy talk that mixes a strange blend of globalisation and patriotism. Case and point, Jensen Huang's recent comments on President Trump's potential upcoming changes to chip export rules. The Nvidia CEO tells Bloomberg that any new rule around exports, whatever it is, "really has to recognise that the world has changed fundamentally since the previous diffusion rule was released. We need to accelerate the diffusion of American AI technology around the world. And so the policies and the encouragement from the administration really needs to be behind that." This is in reference to the so-called Diffusion rule (the Framework for Artificial Intelligence Diffusion) which was issued just before the end of the previous US administration. Should it come into effect this month, it would split the world's countries into three groups: those that can receive chips from the US, those that can only receive some, and those that are blocked completely. President Trump, however, is reportedly considering scrapping this approach and instead requiring licensing on a per-country basis -- if a country wants chips, it must get a license. This would, so the argument goes, give the US more bargaining power over tariffs and enable a more fine-tuned approach to chip exports. But Jensen Huang, CEO of Nvidia, the world's biggest (fabless) chip making company, here seems to be encouraging the US administration to be a little more lax with its approach. This is presumably because requiring each individual country to acquire a license might help with bargaining power, but will surely also at the very least slow down exports. When asked about Chinese company Huawei's chips and how competitive they are to Nvidia's, Huang reiterates the importance of making more, not less: "Whatever policy the administration puts together really should enable us to accelerate the development of AI, enable us to compete on a global stage." And as if to really hit this point home for the patriots in the room, he also reiterates the importance of being competitive in this industry against China. He says: "China is not behind... China is right behind us. We're very, very close. But remember, this is an infinite race. In the world of life there's no two-minute, end of the quarter, there's no such thing, so we're going to compete for a long time. "Just remember that this is a country with great wealth, and they have great technical capabilities. 50% of the world's AI researchers are Chinese, and so this is an industry that we will have to compete for." That there is somewhat of an AI arms race between China and the US I think goes without saying, but the real question is whether more or less export controls is the way to combat that. The Nvidia CEO here seems to be suggesting, even if not outright saying, that the way to remain competitive is to get its chips out there, to "accelerate the diffusion of American AI technology around the world." The counter-argument would be that more exports means more of a chance that AI chips will end up in China. We've already seen tons of chips that are banned from being sold to China ending up in there via third parties. The counter-argument to Huang might be that freer exports would only make such occurrences more likely. Plus, to my ears, laying so much emphasis on the American-ness of Nvidia's chips rings a little hollow. We're not dealing with Ford cars here. Remember, Nvidia doesn't physically make its own chips and most of them come out of Taiwan as TSMC-made. And sure, TSMC is increasing its US production with a promised $100 billion investment, but Taiwan is looking to block TSMC from having its best chips be made in the US. And regardless, most of its production is still coming out of Taiwan and will be for some time. It just seems a bit of a stretch to think of Nvidia exports as an export of American manufacturing in any meaningful sense that could combat, rather than bolster, China in its race against the US for AI supremacy. But that's just one man's opinion -- I'd hope the big wigs in the policy discussion rooms are entertaining a little more nuance. It could also be an argument about profits: More exports equals more money for Nvidia equals more money for a US company making AI chips. Perhaps it's as simple as that -- I suppose things do usually boil down to money, in the end.

A Love Triangle Amidst Chip Wars

Failing to tap into China's artificial intelligence market would represent a tremendous loss, NVIDIA CEO Jensen Huang made an alarming remark in an interview with CNBC on Tuesday, adding that the East Asian country's artificial intelligence market is projected to hit around $50 billion in the next two years. In recent years, considering the US' stance on China and its subsequent action restricting both import and export, NVIDIA faced significant challenges. The company has also come under scrutiny for alleged chip smuggling to China. However, Huang is trying to balance with both countries. On the one hand, he says NVIDIA will support whatever is in the best interest of the US. On the other hand, he notes they hope to continue cooperating with China. The United States has consistently restricted exports of high-end AI hardware to China, fearing China might take over the AI race and create outcomes unfavourable to its interests. This, in turn, has affected the company's business operations and new deals. According to The Information, the company has reportedly received orders from major Chinese tech firms, such as ByteDance, Alibaba, and Tencent, which have collectively placed orders totalling $16 billion for their H20 GPUs. However, NVIDIA is unable to fulfil these orders owing to government restrictions. The company acknowledged in an exchange filing that it could also face a potential charge of $5.5 billion for exporting H20 GPUs without the required permission. Meanwhile, it is reportedly working on a modified GPU that could legally comply with export restrictions. For context, the H20 GPUs were a modified version of NVIDIA's H800 GPUs, designed to meet the US export rules so they could be sold to China. These restrictions were introduced during former President Joe Biden's tenure in 2023. The H800, in turn, was a modified version of the H100 GPU, offering the same computational power but with reduced bandwidth for interconnection. The H100 features a transfer rate of 600 gigabytes per second. In contrast, the H800 offers 300 gigabytes per second, after the regulations restricted the bidirectional transfer rate, allowing only ones under 600 GB/s -- thereby leading to the creation of H800 and banning H100. Nevertheless, the U.S. government removed the transfer rate as a criterion for imposing restrictions, considering it too easy to bypass. Subsequently, the total computational power threshold was decreased. This meant that the H800 could no longer be exported, which led to the creation of the H20 GPUs. Source: Semi Analysis. NVIDIA will not want to forgo its Chinese customers. According to a report last December, technology consulting firm Omdia estimated that ByteDance and Tencent each ordered approximately 2,30,000 NVIDIA chips for 2024. Moreover, in the 12 months ending January 26, 2025, NVIDIA generated $17 billion in sales from China, accounting for 13% of its total revenue. While NVIDIA continues to battle the United States government and figure out ways to export GPUs to China, the country also has its own way of getting its hands on these chips. In addition to purchasing GPUs that NVIDIA is legally allowed to export, companies in China have allegedly gained access to these chips through data centres and subsidiaries in neighbouring countries. For instance, Malaysia's semiconductor industry will closely track the movement of chips across borders, following the US push for tighter regulations on suspected stock movement through the Southeast Asian country. In addition, authorities in Singapore and the U.S. are also investigating allegations that $390 million worth of NVIDIA chip servers sent to Malaysia were fraudulently redirected to China. Malaysia and Singapore are 'Tier 2' countries in the U.S. government's Framework of Artificial Intelligence Diffusion, which allows limited chip exports without a license. The first tier includes 17 countries, including Taiwan, which can access unlimited AI chips. About 120 countries are in the second tier with restricted chip access. Exports are banned to the third group, which includes China, Russia, Iran, and North Korea. Companies can import up to 1,700 GPUs, valued at $40-50 million, without a license to 'Tier 2' countries. Larger imports, worth up to $1 billion, require a license review. For instance, DeepSeek officially revealed that it had trained its V3 model using over 2,000 NVIDIA H800 GPUs, even as contrasting reports emerge to claim that the company (High Flyer) has access to around 10,000 H800s and H100s GPUs each. Amidst rising competition, Chinese technology company Huawei has designed the Ascend 920 AI chip, which seeks to match NVIDIA's H100 GPUs. The company has already shipped more than 8,00,000 units of its Ascend 910B and 910C chips to clients this year. This includes state-owned telecommunications carriers and private AI developers such as ByteDance. The mass production of the 920 chip is set to begin in the second half of this year. Besides, a Financial Times report indicated that Huawei is building an advanced chip production facility to deliver multiple parts for the AI supply chain. "Not only is China on the verge of recreating the entire advanced semiconductors ecosystem domestically-which would rank as one of mankind's most impressive technological achievement ever-but it's increasingly looking like a single company-Huawei-will on its own have the entire ecosystem in house," said Arnaud Bertrand, entrepreneur and founder of MeAndQi.com.

NVIDIA says Huawei AI GPU demand will skyrocket if US export restrictions continue to tighten

NVIDIA CEO Jensen Huang seems concerned over Huawei growing out of control, warns of creating a global market for Huawei AI chips in the future. As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you. NVIDIA CEO Jensen Huang remains concerned over Chinese tech giant Huawei, warning that we could see a future where Huawei AI chips would fight in the global market against NVIDIA AI chips. Jensen has urged US lawmakers to "ease off" pressure on NVIDIA AI GPU exports, saying that the US and China are in an "AI war" where there's a rather fast race for AI models and cutting-edge hardware capabilities. The US government has been tightening restrictions on AI GPUs, but Huawei has been working around this and capitalizing on it by ramping up AI chips and even AI clusters in China. These issues were raised during a closed-door meeting between NVIDIA executives and the US House of Representatives Foreign Affairs Committee on Thursday, where a senior staff source said: "If DeepSeek R1 had been trained on (Huawei chips) or a future open-source Chinese model had been trained to be highly optimized to Huawei chips, that would risk creating a global market demand for Huawei chips". NVIDIA spokesperson John Rizzo said in a statement: "Jensen met with the House Foreign Affairs Committee to discuss the strategic importance of AI as national infrastructure and the need to invest in U.S. manufacturing. He reaffirmed NVIDIA's full support for the government's efforts to promote American technology and interests around the world". Huawei has been delivering CloudMatrix 384 AI clusters in China, powered by its Ascend 910C AI chip, while its next-gen Ascend 910D is coming... but it'll only compete against NVIDIA's previous-gen Hopper H100 AI GPU and not come close to Blackwell, let alone Rubin in 2026. But, the US government's tightening grip on AI GPU exports has been hurting NVIDIA -- a $5.5 billion hit for the H20 being banned recently in China -- which would've kick-started some serious discussions like this between NVIDIA and the Trump administration.

After share price fall, another problem is troubling Nvidia CEO Jensen Huang, he urges American policymakers to intervene urgently

Nvidia CEO Jensen Huang urges US policymakers to prioritize AI and invest in workforce training to maintain a competitive edge. He highlights China's significant AI research presence and draws parallels to past technological revolutions where rapid adoption led to success. Nvidia faces challenges due to US-China trade tensions, impacting processor sales.Nvidia Chief Executive Jensen Huang has pushed American policymakers to make artificial intelligence (AI) a national priority, underscoring the urgent need for investment in workforce training to compete in the global AI race, as per a report. During a speech at the Hill & Valley Forum in Washington, D.C., Huang reiterated that the US needs to use AI technology at its full potential and invest in reskilling employees to tap into its potential, according to Benzinga. Huang said, "To lead, the U.S. must embrace the technology, invest in reskilling, and equip every worker to build with it," quoted Benzinga. The CEO also emphasized the importance of understanding competitive advantages in the AI race, saying that "50% of the world's AI researchers are Chinese" -- a factor he says must "play into how we think about the game," as quoted in the report. He also explained by pointing out how the United States had succeeded historically because it "applied steel, applied energy faster than any country," rather than worrying about labour displacement, reported Benzinga. Huang said, "This is an infinite game," as quoted in the report. His remarks come at a time when his company is facing challenges due to the ongoing US-China trade war, as per the report. After new export restrictions in the US, Nvidia had to suspend its H20 processor sales to China, which the company estimates will reduce earnings by $5.5 billion, reported Benzinga. However, Huang remains optimistic about his company as he predicts AI will eventually handle "20, 30, 40% of 100% of the jobs in the world," quoted Benzinga. How does Huang compare AI to past technological revolutions? He draws parallels to the historical adoption of steel and energy, saying the U.S. succeeded because it embraced new technologies quickly, as per the report. What challenges is Nvidia facing? Due to the US-China trade tensions, Nvidia has had to stop sales of its H20 processors to China, which may cause $5.5 billion loss, as per Benzinga.

Jensen Huang is losing sleep over a Chinese rival; here's everything about the company and what it's doing that has worried the Nvidia CEO

Jensen Huang, Nvidia CEO, is worried. Chinese companies are developing AI chips. DeepSeek's AI model caused Nvidia stock selloff. Huawei is testing its own AI chip. Huang met with US lawmakers. He discussed the threat to US AI market. Restrictions on US sales to China could hurt US companies. Companies might turn to Huawei.Nvidia has long dominated AI with its chips, utilized by big players such as Tesla and Meta. But recent actions by China's tech giants have caused concerns to CEO Jensen Huang, as per a report. In January, DeepSeek, a Chinese startup, released an AI model based on old Nvidia chips, and it caused a huge selloff in the stock of Nvidia and also led investors to reconsider the future of the company in an open global marketplace, according to The Street. Just months later, the concerns escalated when Huawei, one of the world's telecommunication and consumer electronics firms, said it would test its own AI chip, a direct rival to Nvidia's H100 GPU, as per The Street. According to the report, Huang recently met with US House of Representatives Foreign Affairs Committee to discuss the threats that he believes China's progress poses to the US AI market. He pointed out the threat that US companies might be left behind as currently the US has imposed restrictions on what it can sell to China, saying, "If U.S. platforms are absent, companies will turn to strategic competitors like Huawei to fill the gap," as quoted in the report. The Street's source also mentioned that, "If DeepSeek R1 had been trained on (Huawei chips) or a future open-source Chinese model had been trained to be highly optimized to Huawei chips, that would risk creating a global market demand for Huawei chips," as quoted in the report. Why is Jensen Huang worried about Chinese competitors? Huang is concerned that companies like Huawei and startups like DeepSeek are making progress in AI, posing a potential threat to US companies in the sector. What did Jensen Huang tell US lawmakers? Huang met with US lawmakers to discuss how China's progress in AI technology could undermine US companies.

NVIDIA CEO Jensen Huang Says President Trump Should Rethink AI Export Controls, Claims Wrong Policy Will Give China An Edge

NVIDIA's CEO is apparently demanding that the Trump administration rethink its approach to the AI Diffusion rule, claiming that the export controls have transformed China into a direct rival. Well, it seems like the US administration is going to make one of the most important decisions when it comes to safeguarding America's position as the dominant AI force. For those unaware, the AI Diffusion policy, initially introduced by the Biden administration, is set to go into implementation by May 15, and it is reported that the current government plans to change the policy, as reported earlier. Now, in a brief meeting with the press, NVIDIA's Jensen Huang has demanded that the Trump administration prioritize the sustainability of American businesses: We need to accelerate the diffusion of American AI technology around the world. The policies and encouragement from the administration really need to support that. I'm not sure what the new diffusion rule is going to be, but whatever it turns out to be, it really has to recognize that the world has changed fundamentally since the previous diffusion rule was released. - NVIDIA's CEO via Bloomberg For those unaware, the AI Diffusion rule initially divided global nations into different tiers, each coming in with varied restrictions. Now, it is claimed that the Trump administration plans to change the policy in order to use AI hardware as a "negotiating tool" for the tariff deal. The government is rumored to implement a licensing scheme, which means that countries looking to access cutting-edge AI chips from the US would need a license. Ultimately, this will allow the Trump administration to nitpick which country they would want AI chips exported to. With this policy being implemented, it is clear that companies like NVIDIA will suffer a lot, given that their market presence in "unfavoured regions" by the US will be reduced dramatically, and this includes China as well. NVIDIA's CEO also said that China is growing to be a formidable rival through the innovations driven by Huawei in the AI segment has positioned the nation to produce cutting-edge chips using in-house resources.

Nvidia CEO Jensen Huang Sounds Alarm As 50% Of AI Researchers Are Chinese, Urges America To Reskill Amid 'Infinite Game' - NVIDIA (NASDAQ:NVDA), C3.ai (NYSE:AI)

NVIDIA Corp. NVDA CEO Jensen Huang has urged American policymakers on Thursday to fully embrace artificial intelligence as a long-term strategic priority that demands national investment in workforce development. What Happened: Huang, speaking at Hill & Valley Forum in Washington, DC, said, "To lead, the U.S. must embrace the technology, invest in reskilling, and equip every worker to build with it." Huang stressed the importance of understanding competitive advantages in the AI race, noting that "50% of the world's AI researchers are Chinese" -- a factor he says must "play into how we think about the game." Huang compared today's AI revolution to previous industrial transformations, arguing that the United States succeeded historically because it "applied steel, applied energy faster than any country," rather than worrying about labor displacement. "This is an infinite game," Huang said. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started See Also: Eli Lilly Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts Why It Matters: Huang's comments come amid escalating U.S.-China tensions over AI chip exports. Recently, Nvidia faced new export restrictions affecting its H20 processor sales to China, which the company estimates will reduce earnings by $5.5 billion. During his recent GTC 2025 keynote, Huang unveiled Groot N1, a foundation model for humanoid robots, addressing what he describes as a looming global labor shortage. "By the end of this decade, the world is going to be at least 50 million workers short," he said, suggesting robots could fill these gaps. Despite supply constraints for Nvidia's in-demand Blackwell chips, Huang remains optimistic, telling Fox Business Network that "demand is just incredible" as the company works to scale production. He predicts AI will eventually handle "20, 30, 40% of 100% of the jobs in the world," emphasizing the importance of workforce adaptation. Read More: Microsoft Plans To Leverage A 'Malleable Resource' To Thrive In A Recession, Satya Nadella Explains Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AIC3.ai Inc$22.452.00%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum38.74Growth60.90Quality-Value51.99Price TrendShortMediumLongOverviewNVDANVIDIA Corp$113.023.76%Market News and Data brought to you by Benzinga APIs

Nvidia CEO Jensen Huang Warns US Lawmakers Are Fueling Rise Of China's Huawei With Their Chip Export Bans - NVIDIA (NASDAQ:NVDA), Amazon.com (NASDAQ:AMZN)

On Thursday, Nvidia Corporation NVDA CEO Jensen Huang told U.S. lawmakers that export restrictions on AI chips may be helping China's Huawei Technologies gain a competitive foothold in the global artificial intelligence race. What Happened: In a closed-door meeting with the House Foreign Affairs Committee, Huang and other Nvidia executives raised concerns that U.S. efforts to limit China's access to cutting-edge chips may be having unintended consequences, reported Reuters, citing a senior Congressional committee staff source. "If DeepSeek R1 had been trained on [Huawei chips] or a future open-source Chinese model had been trained to be highly optimized to Huawei chips, that would risk creating a global market demand for Huawei chips," a source told the publication. See Also: Nvidia's Jensen Huang Meets Japanese PM To Discuss AI's Growing Energy Needs In a statement, Nvidia spokesperson John Rizzo confirmed Huang's meeting with lawmakers, saying he discussed "the strategic importance of AI as national infrastructure and the need to invest in U.S. manufacturing," the report noted. Rizzo added that Huang "reaffirmed Nvidia's full support for the government's efforts to promote American technology and interests around the world." Why It Matters: On the same day, Nvidia also criticized Amazon.com, Inc. AMZN-backed Anthropic for its allegations related to AI chip export restrictions, urging American firms to focus on innovation instead of making exaggerated allegations, reported CNBC. Last month, the U.S. government barred Nvidia from selling its H20 chip, designed specifically for the Chinese market, after initial shipments began. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Nvidia expects to take a $5.5 billion hit in the first quarter ending April 27, tied to inventory and purchase commitments for its H20 chip. Huawei has begun to fill the vacuum left by Nvidia's constrained presence. Last month, it was reported that the Chinese tech giant was preparing mass shipments of its own AI chips as demand for alternatives surged in China. Price Action: Nvidia shares have declined 19.30% year-to-date but remain up 34.41% over the past 12 months. On Thursday, the stock rose 2.47% to close at $111.61, according to Benzinga Pro. Benzinga Edge Stock Rankings gives Nvidia a strong growth score of 94.78%. Click here to see how it stacks up against other top tech companies. Read More: 'Most People Don't Have The B**ls To Do It,' Says Mark Cuban, Praising Musk For Going 'All In' With His Own Money For His Startups Photo Courtesy: glen photo via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$184.10-0.17%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum64.44Growth94.08Quality73.76Value49.42Price TrendShortMediumLongOverviewNVDANVIDIA Corp$111.102.00%Market News and Data brought to you by Benzinga APIs

Nvidia CEO Jensen Huang Says Losing Access To China's Potential $50 Billion AI Market Would Be A 'Tremendous Loss' - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

As tensions rise over U.S. chip restrictions, Nvidia Corporation NVDA CEO Jensen Huang warns that cutting off access to China's booming AI market could hurt not just the company, but American jobs and innovation. What Happened: Speaking with CNBC on Tuesday, Huang addressed the company's $5.5 billion write-off tied to U.S. restrictions on chip sales to China, a critical market for artificial intelligence. "The world's dynamic today. You've just got to stay agile," Huang said. See Also: Elon Musk Says Will Come As A 'Surprise To Most' As China's Economy Surpasses US And EU Amid Rising Tariffs And Growing Recession Fears He went on to add that China is projected to become a $50 billion AI market within the next two to three years and represents a huge opportunity. "It would be a tremendous loss not to be able to address it as an American company. It's going to bring back revenues. It's going to bring back taxes. It's going to create lots of jobs here in the United States," the Nvidia CEO stated. Huang then said that the company will remain flexible and responsive to government policies, stating that it will support whatever is in the nation's best interest. "We'll stay agile and keep moving on." Why It's Important: Last week, it was reported that Nvidia notified key Chinese clients -- including Alibaba Group BABA, ByteDance, and Tencent Holdings TCEHY -- that it is developing new AI chip models specifically designed to meet U.S. export requirements. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Huang has also warned U.S. lawmakers that export restrictions on AI chips could be giving Huawei Technologies a competitive advantage in the global AI race. Nvidia also criticized AI startup Anthropic for pushing for tougher U.S. export limits on AI chips to China. Price Action: On Tuesday, Nvidia shares slipped 0.25% during the regular hours, closing at $113.54. In the after-hours trading, it gained 0.85%, reaching $114.50, according to Benzinga Pro. Nvidia also earned a strong growth score of 94.67% from Benzinga Edge Stock Rankings. Click here to see how it stacks up against other top tech players like Alibaba and Tencent. Read Next: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Photo Courtesy: jamesonwu1972 on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$130.202.87%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum93.22Growth73.34Quality56.96Value79.40Price TrendShortMediumLongOverviewNVDANVIDIA Corp$114.500.60%TCEHYTencent Holdings Ltd$64.952.06%Market News and Data brought to you by Benzinga APIs

Trade barriers to China's AI market a 'tremendous loss,' NVidia CEO says

Nvidia CEO Jensen Huang has said that the market for artificial intelligence chips in China could reach $50 billion in the next couple of years, making it crucial for U.S. companies to have access to the country. "It would be a tremendous loss not to be able to address it as an American company," Huang said in an interview on CNBC. "It's going to bring back revenues. It's going to bring back taxes. It's going to create lots of jobs here in the United States." Huang is lobbying against the tightening of restrictions on his company and peers that limit their access to China, the biggest market for semiconductors. The CEO has argued that the move will actually hurt U.S. national security -- something the rules are designed to protect. A recent increase in restrictions led the company to book write-downs of $5.5 billion related to its H20 product. That chip, a less powerful processor designed for the Chinese market, will now require special approval from regulators before it can be shipped to customers in that country. "The best move is let Americans do American -- let us go after it and win it," he said. The world is "hungry for AI. Let us get the American AI out in front of everybody right now."

NVIDIA's Huang said not competing in China AI market would be 'tremendous loss' By Investing.com

Investing.com -- NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang said Tuesday the Chinese AI market is going to be worth $50 billion in a couple of years, and not being able to compete is a "tremendous loss." NVIDIA recently disclosed a $5.5 billion write-off after the U.S. government banned it from selling its less advanced H20 AI chips and systems in China. "It would be a tremendous loss not to be able to address it as an American company," Huang said in an interview with CNBC's Jon Fortt given with ServiceNow (NYSE:NOW) CEO Bill McDermott. " It's going to bring back revenue, it's going to bring back taxes, it's going to create lots of jobs here United States." Despite the comments, Huang said the company would "stay agile" and comply with the government's policies. "You know, we just have to stay agile," he said. "Whatever the policies are at the government, whatever is in the best interest of our country, will support and and we'll stay agile and keep moving on the market for AI is just gigantic." Huang added that U.S. AI companies should be allowed to compete and will win. "The world is right now hungry, anxious to engage AI," Huang added. "Let us get the American AI out in front of everybody right now."

Nvidia CEO calls for revised AI export rules to boost global competitiveness By Investing.com

Investing.com -- Jensen Huang, the Chief Executive Officer of Nvidia Corp . (NASDAQ:NVDA), has urged the Trump administration to revise the regulations governing the export of artificial intelligence (AI) technology from the United States. Huang's remarks come as he seeks to enhance the global competitiveness of American businesses in the AI sector. Huang, whose company is a leading provider of AI chips for training artificial intelligence models, including for OpenAI, expressed his views during a CNBC interview. He emphasized the need for the diffusion of American AI technology worldwide and called for supportive policies and encouragement from the administration. At present, Nvidia is restricted from selling its most advanced products to customers in China. The Biden administration has proposed an additional policy for AI diffusion, which involves limiting the sale of AI technology to countries around the world based on three bands of qualification. Huang expressed uncertainty over the new diffusion rule, but stressed that it must take into account the significant changes that have occurred globally since the previous rule was implemented. In addition to his comments on export regulations, Huang also highlighted the growing technological rivalry with China. He noted that China is not lagging behind in AI technology, and specifically mentioned Huawei Technologies Co., a Chinese telecom giant that has ventured into designing its own AI chips. According to Huang, the competition between the US and China in the AI sector is extremely close.