Nvidia CEO Criticizes US AI Chip Export Bans, Urges Policy Shift Amid China Market Challenges

Nvidia's H20 follow-up in China won't be based on Hopper, says Jensen -- Reportedly switching from HBM to GDDR7

Nvidia's next AI accelerator for the Chinese market, following the recent ban on its HGX H20 offerings, will not be based on the Hopper architecture, reports Reuters citing a Taiwanese TV news stream featuring Jensen Huang. Moreover, according to insider scoops obtained by Nikkei Asia, Nvidia is moving from HBM (High Bandwidth Memory), to a GDDR7 based design, although the specific architecture is still up in the air. The U.S. government effectively banned the export of Nvidia's H20 and AMD's Instinct MI308 AI chips to China last month, requiring a license with a presumption of denial. After the $5.5 billion loss Nvidia incurred following this change, reports pointed towards a further cut-down H20 variant. Nvidia's top-end H100 and H200 accelerators were banned from export to China even before they were launched. To mitigate these regulations, Nvidia introduced the H800 in March 2023, which too was eventually barred from export in October of the same year. Since then, the H20 has been Nvidia's most advanced offering for the Chinese market in the interim, until its recent export prohibition last month. When questioned about the follow-up to the H20, Nvidia CEO Jensen Huang replied, "It's not Hopper because it's not possible to modify Hopper anymore." The U.S. Government cited the H20's memory bandwidth and interconnect bandwidth for its potential use in Chinese supercomputers, so it would stand to reason that Nvidia would further cut down the memory subsystem. Nikkei Asia claims that Nvidia is eying introducing GDDR7-based Hopper GPUs. It's important to understand that the GH100 core powering the Hopper family only supports HBM-compliant memory controllers. While the consumer-equivalent Ada Lovelace is a possibility as it supports GDDR memory, Hopper was designed from the ground up as an AI/ML powerhouse. Nvidia can rework the existing Hopper architecture to work around U.S. sanctions, which isn't likely, as Jensen has himself directly refuted the idea. Alternatively, Nvidia could shift to Blackwell, with the consumer-focused GB20X (RTX 50) series chips offering support for GDDR7 memory. Then again, Blackwell for consumers lacks support for NVLink, which is essential for multi-GPU scaling. This uncertainty will likely boost the popularity of Huawei's Ascend accelerators in China, even if they don't match the performance of Nvidia's solutions. The cat and mouse game continues, as Nvidia develops a new solution that will probably be met with another export ban in the future. Anyhow, it'll be interesting to see how Nvidia navigates these meandering regulations and develops future solutions for the Chinese market, as it wouldn't want to cede market share to Huawei.

Nvidia CEO Jensen Huang says U.S. ban on AI chip exports "a failure," says spread of U.S. chips vital to competitive advantage

Jensen Huang believes that the U.S. should diffuse its AI tech across the globe instead of stopping its rivals from getting it. Nvidia CEO Jensen Huang said in an interview that the U.S.'s bans on AI chip exports are "a failure" and are having the exact opposite effect that the White House wants, in that it's pushing its Chinese rivals like Huawei to innovate and build AI hardware that could compete against its offerings. According to the Financial Times, the chief executive of one of the most valuable companies in the world is criticizing Washington, D.C.'s ban on the Nvidia H20, which it specifically built for China. Huang said that Nvidia had a 95% market share in China in early 2021, at the start of the Biden administration. But today, it has already dropped to just 50% -- an effect of the various bans and sanctions that both the Biden and Trump governments have applied to China. However, this does not mean that China's AI industry is shrinking. Instead, many companies are turning to Nvidia's Chinese competitors. Many of these companies still haven't matched Nvidia's technology, but they're quickly catching up, especially as China realized that its reliance on American technology means that it can be cut off anytime. That's why Beijing and several other Chinese institutions are supercharging their investments in AI chips. Aside from that, some of the biggest Chinese tech companies, like Tencent and Alibaba, have started purchasing locally produced AI tech, which is further fueling research and development of Chinese chip makers. "The idea of AI diffusion limiting other countries' access [to] American technology is a mission expressed exactly wrong," Huang said in an interview with Stratechery. "It should be about accelerating the adoption of American technology everywhere before it's too late. If the goal is for America to lead, then AI diffusion did exactly the opposite of that." Former Commerce Secretary Gina Raimondo seemingly agrees with Huang. She was previously quoted as saying that holding back China's progress through bans and sanctions is a fool's errand, and that investments in semiconductor manufacturing, research, and innovation should matter more. Aside from being ineffective, Huang also said that the H20 ban will not just cost Nvidia, but it will also mean that the U.S. will miss out on a lot of taxes. "Its costs are enormously costly. Not only am I losing $5.5 billion -- we wrote off $5.5 billion -- we walked away from $15 billion of sales, and probably -- what is it? -- $3 billion worth of taxes," said the Nvidia CEO. "The China market is about $50 billion a year, and it's not $50 million, it's $50 billion. $50 billion is like Boeing, not the plane, the whole company. To leave that behind so that the profits that go with that, the scale that goes with that, the ecosystem building that goes with that -- ." The loss of that massive ecosystem is the biggest threat to CUDA in the long run.

Nvidia CEO Urges US to Lower Barriers to $50 Billion China Arena

Nvidia Corp. chief Jensen Huang called on the US to ease restrictions on the export of AI technology to China, or risk losing out on billions of dollars in revenue to up-and-coming rivals such as Huawei Technologies Co. Huang echoed warnings from some corners of Washington about the need to propel US AI technology by lowering export barriers intended to curtail the rise of a geopolitical rival. China alone will account for a $50 billion opportunity in 2026, Huang told reporters at Computex in Taipei. If American tech providers like Nvidia aren't allowed in, local customers will just spend that money elsewhere, he said.

Nvidia CEO Jensen Huang labels US GPU export bans 'wrong'

Argues the world needs China's AI researchers working on his chips so the rest of us benefit Computex Nvidia CEO Jensen Huang has said the USA's ban on exports of his company's most powerful accelerators to China is "precisely the wrong policy" and "a failure". Speaking at a Q&A session during the Computex conference in Taiwan, Huang bemoaned the Trump administration decision to bar sales of Nvidia's H20 accelerator in China. He regretted that the decision will harm Nvidia's revenue and profit, and therefore its ability to pay taxes and hire people in the USA. He also thinks the policy will harm humanity, because half of the world's AI researchers are in China and he rates their output as among the world's finest. He wants them using on Nvidia hardware so their work can be used around the world. "DeepSeek was built on Nvidia," he said, before describing it as "a gift" due to the many optimization techniques the company used to create its R1 model. Investors panicked when R1 arrived, and the value of AI hardware stocks slumped. Huang thinks that reaction misread the situation, because AI has moved on from what he calls "one-shot" applications such as using generative AI to respond to a prompt - a job that requires a single burst of computing. DeepSeek offers reasoning models that require more computing - Huang thinks R1 has therefore spurred innovation that collectively increased the need for computing by 100 to 1000 times. He argued that preventing Nvidia from selling to China will mean Middle Kingdom researchers stop working with the company's hardware, and Nvidia users elsewhere would not be able to tap their innovations and the company sells less stuff and pays less taxes. Huang pointed out Chinese firms are creating their own AI hardware, meaning US policy has spurred rather than slowed innovation. He said the policy is therefore "a failure". Haung said Nvidia will try to create accelerators that comply with US export controls, but said "We do not know how to degrade [the GPU architecture] Hopper anymore. What we are trying to do right now is how to best serve the market. We have degraded the product so severely it will be hard." The CEO also had some praise for Trump administration policies, especially the changed AI diffusion stance that means the USA will permit exports of AI infrastructure to more countries. Huang said the changed policy will help Nvidia to grow, and help US-made AI tech to dominate the world. But he also thinks governments need to do more to accelerate approval for energy generation projects - using any source of energy - so datacenters can get the juice needed to run AI workloads. He also had faint praise for the Trump administration's policy of building more onshore manufacturing facilities, by saying that the AI boom will create both enormous demand and an opportunity to build more products in the USA. However he also said it is "impossible to do all manufacturing onshore" and in numerous appearances at Computex has pointed out that Nvidia systems comprise over a million components sourced from manufacturers around the world. Huang also used the Q&A session to spruik Nvidia's NVlink Fusion, which allows multiple accelerators from different vendors to use Nvidia's NVLink interconnect. The CEO said Nvidia customers have been asking to use NVLink in more places, because in his view "UALink is not going so well". UALink is an interconnect spec developed by a consortium of Nvidia's rivals, who in April delivered a first spec, while admitting products that use it are at least a year away. Huang said NVLink Fusion will gain traction while customers wait for UALink, but was dismissive when asked about the latter's progress and prospects. He also dismissed reports that Nvidia plans to build an R&D center in China, saying that the office there simply lacks space. "The reason we need a new offices is we do not have enough chairs," he said. "If one person types, the other person has to stop." Bigger offices will therefore make Nvidia more efficient. "There will be more bathrooms, and the lines will be shorter," Huang said, perhaps showing that some very human problems remain unsolvable by AI. ®

US to Keep China Chip Curbs, Spurning Nvidia's Call for Relief

The Trump administration will maintain efforts to keep advanced artificial intelligence technology out of China's hands, a top White House official said, brushing off calls from Nvidia Corp. Chief Executive Officer Jensen Huang to ease restrictions on chip exports to the world's second largest economy. "We obviously have huge respect for Jensen," Sriram Krishnan, White House senior policy adviser for artificial intelligence, said in a Bloomberg Television interview Wednesday. "When it comes to inside China, I do think there is still bipartisan and broad concern about what can happen to these GPUs once they're physically inside" the country, he added.

Nvidia seeks Shanghai R&D site after US chip curbs, say sources

HONG KONG, May 16 (Reuters) - Nvidia (NVDA.O), opens new tab is seeking a site in Shanghai for a research and development centre, three sources close to the matter said, reflecting the strategic significance of the Chinese market where U.S. curbs on advanced chip exports have hit sales. The U.S. chipmaker began the search in early 2025 and is primarily evaluating locations in Shanghai's Minhang and Xuhui districts, one of the sources said. The project gained momentum after a surprise visit to China by Nvidia CEO Jensen Huang last month, said two of the sources. Huang, who has consistently said China is critical to Nvidia's growth, made his visit immediately after the U.S. placed new restrictions on China-bound shipments of its H20 chips, the only AI chip the company can sell legally in China. Huang met senior Chinese officials, including Vice Premier He Lifeng and Shanghai's mayor Gong Zheng. Reuters reported earlier this month that Nvidia plans to release a downgraded version of the H20 chip for China in the next two months, as it seeks to prop up sales in the country, where it has been lost market share to domestic rivals such as Huawei. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales. The local government of Shanghai, which hosts China's largest foreign business community, including firms such as Tesla (TSLA.O), opens new tab, has expressed willingness to offer incentives for the Nvidia project, including tax reductions, said two of the sources. The local authorities are also considering offering a substantial amount of land to Nvidia for its China R&D centre, one source added. Nvidia declined to comment, while the Shanghai city government did not immediately respond to a request for comment. The sources declined to be named, as the plan is not public. Following his visit to China, Huang told CNBC that the country's AI market could reach approximately $50 billion within the next two-to-three years. He said that being excluded from this rapidly expanding sector would represent a "tremendous loss" for Nvidia, especially as competition with Huawei intensifies. During an earnings call in February, before H20 chip sales to China were restricted, Nvidia executives said the company's sales to China were about half the level before U.S. export controls. Since 2022, the U.S. government has imposed restrictions on the export of Nvidia's most advanced chips to China, citing concerns over potential military applications. The Financial Times first reported on Friday about Nvidia's plan to build a R&D centre in China. Reporting by Julie Zhu, Clare Jim and Beijing Newsroom; Additional reporting by Che Pan and Max Cherney; editing by Barbara Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:ChinaADAS, AV & SafetySustainable & EV Supply Chain Julie Zhu Thomson Reuters Julie Zhu is a Hong Kong-based Senior Correspondent for Reuters, focusing on financial news and corporate deals across Greater China. Her coverage spans regulatory policies, M&A, IPOs, private equity, and financial institutions. Since joining Reuters in 2016, Julie has been at the forefront of covering the region's significant events including China's unprecedented regulatory crackdown and Beijing's COVID response policies. She was named Reuters' Reporter of the Year in 2021. Previously, Julie worked at the Financial Times where she reported on business and general news about South China and Hong Kong.

Nvidia chief Jensen Huang says US chip curbs on China 'a failure'

Nvidia chief Jensen Huang has condemned US export controls designed to limit China's access to artificial intelligence chips as "a failure" that spurred Chinese rivals to accelerate development of their own products. In strongly worded criticisms of chip policies pursued by successive US administrations, the chief executive of the world's leading AI chipmaker also criticised Washington's decision to ban an Nvidia chip designed specifically for the Chinese market. He told a news conference at the Computex tech show in Taipei on Wednesday that export controls had turbocharged Chinese rivals, led by tech giant Huawei, to build competitive AI hardware. "Four years ago, Nvidia had 95 per cent market share in China. Today, it is only 50 per cent," he said. "The rest is Chinese technology. They have a lot of local technology they would use if they didn't have Nvidia." Huang added: "Chinese AI researchers will use their own chips. They will use the second best. Local companies are very determined and export controls gave them the spirit and government support accelerated their development. Our competition is intense in China." The Trump administration in April banned Nvidia from selling the H20, its watered-down AI chip tailored to align with former export controls, prompting a $5.5bn writedown by the company. Huang reiterated that Nvidia had no current plans to roll out another "Hopper" chip for the China market, saying the company had already "degraded the chip so severely".

Nvidia says US export controls on AI to China were 'a failure'

TAIPEI, May 21 (Reuters) - U.S. export controls on artificial intelligence to China were a failure, Nvidia (NVDA.O), opens new tab Chief Executive Jensen Huang said on Wednesday. Speaking at the annual Computex event in Taipei, Huang said Nvidia's market share in China dropped to 50%, from 95% at the start of former U.S. President Joe Biden's administration. Reporting By Max Cherney and Wen-Yee Lee in Taipei; Editing by Anne Marie Roantree and Tom Hogue Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:China

Nvidia plans Shanghai research centre in new commitment to China

Nvidia is seeking to build a research and development centre in Shanghai that would help the world's leading maker of artificial intelligence processors stay competitive in China, where its sales have slumped due to tightening US export controls. Chief executive Jensen Huang discussed the plan with Shanghai's mayor Gong Zheng when they met in the Chinese city last month, according to two people with knowledge of the matter. Nvidia is leasing a new office space in Shanghai to accommodate existing employees as well as a potential expansion. According to people with knowledge of the plans, the R&D centre would research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington's curbs. The actual core design and production will remain overseas however, due to legal sensitivity around transferring intellectual property to China. Nvidia said: "We are not sending any GPU designs to China to be modified to comply with export controls." The Shanghai team would also work on global R&D projects including verification of chip designs, optimisation of existing products and sector focus research such as autonomous driving, people with knowledge of the matter said. Huang also wants to ensure access to top artificial intelligence talent based in China. Nvidia is currently advertising roles based in Shanghai, including engineers to help "guide the development of next-generation deep learning hardware and software", and "develop and optimise ASIC designs that compete on a global scale". The Shanghai government had shown preliminary support for such plans, while Nvidia was lobbying the US administration for approval, said one of the people. The Silicon Valley company has about 2,000 employees in the Chinese city, mostly in sales and related support functions. Nvidia is expanding its research footprint in China as it seeks to maintain a leadership position in one of its largest overseas markets, where it fears local competitors led by Huawei could take over by offering a rival AI ecosystem. While China accounted for about 14 per cent of Nvidia's revenues last year, at about $17bn, Huang has estimated it could be a $50bn market in a couple of years. "We want to build the world's AI [where] American standards are being adopted around the world," Huang said last week at a Milken Institute event. "If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable . . . they'll step in." The Trump administration issued a warning this week to American and foreign companies around the world that the use of AI chips manufactured by Huawei could trigger criminal penalties for violating US export controls. Huang flew to Beijing to meet Chinese vice-premier He Lifeng on April 17, days after new export restrictions were imposed on Nvidia's H20 chip, a watered-down model that had already been redesigned to comply with Biden-era controls limiting sales to China. Given the restrictions on its best-selling chips in China, Nvidia is offering L20 processors -- lower-end chips without high-bandwidth memory and with less computing power -- to Chinese clients as an alternative, according to people with knowledge of the matter. Tech giants are understood to be hesitant to put in orders because the processors cannot compete with rival Chinese products on performance. "We are in an awkward situation where we either choose a worse Nvidia chip that runs on [its software system] Cuda, which means lower operational cost, or switch to Chinese chips altogether and live through the pain of switching systems," said one executive at a leading Chinese tech firm. Clients led by ByteDance, Alibaba and Tencent are monitoring geopolitical developments to evaluate whether Nvidia could offer a redesigned high-end chip to meet their needs. While Nvidia was exploring various options, there were no finalised plans because of legal uncertainty, the people said.

Nvidia says U.S. export controls on AI chips to China were 'a failure'

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the Computex conference in Taipei, Taiwan, on Tuesday, May 20, 2025. U.S. export controls on artificial intelligence chips to China were "a failure", Nvidia Chief Executive Jensen Huang said on Wednesday. "All in all, the export control was a failure," Huang said adding, "The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed." The U.S. block on sales of advanced AI chips to China has forced companies there to buy semiconductors from Chinese designers such as Huawei, while also spurring China to invest aggressively to develop a supply chain that doesn't rely on manufacturers outside the country. Huang's comments came after China on Monday urged the United States to "immediately correct its wrongdoings" and stop "discriminatory" measures following the U.S. guidance warning companies not to use advanced computer chips from China, including Huawei's Ascend AI chips.

Jensen Huang says U.S. chip restrictions have cut Nvidia's China market share nearly in half

Nvidia CEO Jensen Huang said overnight that U.S. chip export controls are a "failure" and warned that the restrictions are doing more damage to American business than to China. Huang said in a press conference at Computex, an artificial intelligence exhibition in Taiwan, that the policies have cut the AI chip leader's China market share from 95% to 50% and motivated Beijing to make its own chips faster. Huang's comments came as the truce between the U.S. and China over tariffs and semiconductors continues to be delicate. The Chinese Commerce Ministry responded to the Trump administration's recent chip policy change on Monday, calling the U.S. policy "overreaching" and "bullying," and demanding that the White House "correct its mistakes." "The U.S. abuses export control measures, imposing unjustified restrictions on Chinese chip products and even interfering with Chinese companies' use of domestically produced chips within China," the ministry said. The White House scrapped the tiered "AI Diffusion Rule" rolled out by former President Joe Biden in January and promised to fully replace it in the future. Nvidia is stuck in the middle, with Huang maintaining relationships with both sides in a deepening tech cold war.

Nvidia's Jensen Huang thinks U.S. chip curbs failed -- and he's not alone

Jensen Huang, co-founder and CEO of Nvidia Corp., speaks during a news conference in Taipei on May 21, 2025. Replacing Nvidia is a tall order. While Chinese competitors are years behind the company's cutting-edge technology, many analysts and insiders warn they are catching up, thanks to U.S. export restrictions. U.S. chip restrictions on the sale of advanced semiconductor technology, especially those used in artificial intelligence, have been rolled out over several years, with the initial aim of curbing China's military advancement and protecting US dominance in the AI industry. However, according to Nvidia CEO Jensen Huang, U.S. semiconductor export controls on China have been "a failure," causing more harm to American businesses than to China. While the goals of cutting back the Chinese military's access to advanced U.S. technology and maintaining U.S. leadership in AI appear to have had some success on paper, loopholes and existing semiconductor stockpiles in China have complicated these aims, said Ray Wang, an independent tech and chip analyst with a focus on U.S.-China competition. "That's partly why we are seeing a closing of the gap between Chinese and U.S. AI capabilities," added Wang.

Nvidia boss calls US chip policy a 'failure'

Mr Huang's comments reflect an ongoing debate in the US over how to balance global business interests with economic and national security concerns, against a backdrop of tensions with China. Trump has spearheaded sweeping trade tariffs, despite objections from business groups. But he has taken a more mixed approach to the tech industry, from which he drew critical support during last year's re-election campaign. The decision to drop the most expansive Biden-era rule helped facilitate AI deals between firms such as Nvidia and countries including Saudi Arabia, which was announced during Trump's tour of the Middle East last week. But the White House has tightened restrictions in other ways, barring US firms from sales of advanced technology to dozens of new companies, mostly from China. Last month, the Commerce Department said it would impose new licensing requirements for exports of certain Nvidia chips. It has said it intends to replace the Biden-era restrictions with its own approach. It also recently issued an alert to US firms, warning them that using Huawei chips risked violating US rules. Beijing has since pushed back against that move, accusing the US of undermining the framework agreed during trade talks in Switzerland earlier this month.

US chip export controls are a 'failure' because they spur Chinese development, Nvidia boss says

Comments from Jensen Huang come as Beijing accuses the US of 'bullying and protectionism' US chip exports controls have been a "failure", the head of Nvidia, Jensen Huang, told a tech forum on Wednesday, as the Chinese government separately slammed US warnings to other countries against using Chinese tech. Successive US administrations have imposed restrictions on the sale of hi-tech AI chips to China, in an effort to curb China's military advancement and protect US dominance of the AI industry. But Huang told the Computex tech forum in Taipei that the controls had instead spurred on Chinese developers. "The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development," Huang told media the Computex tech show in Taipei. "I think, all in all, the export control was a failure." "China has a vibrant technology ecosystem, and it's very important to realise that China has 50% of the world's AI researchers, and China is incredibly good at software," Huang said. Nvidia, which designs high-end GPUs, has been battered by US chip export controls. Huang said on Wednesday the company had written off "billions of dollars" in sales, and it's share of China's AI chip market had fallen from almost 95% at the start of the Biden administration to 50%. Last month Huang made a surprise visit to Beijing, where he met with the head of the China Council for the Promotion of International Trade, according to Chinese state media, and the DeepSeek founder, Liang Wenfeng, according to the Financial Times. His visit came just days after further US restrictions banned shipments to China of Nvidia's H20 datacentre GPUs, a lower-powered version of other Nvidia chips which was designed specifically to comply with Biden-era restrictions. The US government told Nvidia the new rules were designed to address the risk that its products might be "used in, or diverted to, a supercomputer in China". Huang's Beijing meeting with Liang was to discuss new chip designs for the AI company that would not trigger the new US bans, the FT report said. Last week the Trump administration rescinded some of the existing controls on chip sales to China, after some countries said they were being shut out from crucial technology needed to develop artificial intelligence. But it also unveiled fresh guidelines for other countries, warning companies that using Chinese-made hi-tech AI semiconductors, specifically tech company Huawei's Ascend chips, could put them in breach of existing US export controls. In response China accused the US of "abusing export controls to suppress and contain China". The commerce ministry said on Wednesday the warning was "typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain". It also warned that "any organisation or individual that enforces or assists in enforcing such measures" could be in violation of Chinese law.

Jensen Huang celebrates lift on some GPU export bans, labels them a "failure"

CEO Jensen Huang celebrates Trump's decision to reverse some restrictions Nvidia CEO Jensen Huang has criticized the US AI chip export controls to China, calling them a "failure" that ultimately ended up costing American businesses billions. Speaking at this year's Computex event, the leader praised Trump's move to modify the Biden-era export curbs (via Reuters), stating that "President Trump realizes it's exactly the wrong goal." In April, the world's most valuable chipmaker declared it would accrue an estimated $5.5 billion in costs solely relating to the export of H20 chips to China and other restricted nations. Huang said the original export assumptions were flawed, and didn't stop AI research in China, which continues with heavy local investment. However, while the country continues virtually unaffected, Nvidia's market share in China dropped from 95% to 50% in the period after Biden's export restrictions were introduced. Intense competition from domestic firms, like Huawei, has already filled the gaps left by US suppliers. The CEO explained that China's AI market could reach a staggering $50 billion this year, marking a major opportunity for Nvidia if access to the nation is restored via lifted restrictions. Apart from the $5.5 billion in estimated costs, Nvidia expected $15 billion in lost revenues due to export restrictions on its H20 chips. Nvidia is also developing a compliant version of its Blackwell AI chip with downgraded memory to meet US restrictions. Despite reversing some Biden-era bans, the Trump administration is considering replacing the tiered export system with a global licensing regime for better leverage in trade talks. Earlier this week, China responded to US actions by demanding an end to "discriminatory" policies. "AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries," Huang said in the company's most recent earnings report, when it revealed a 78% year-over-year increase in quarterly revenue.

Nvidia CEO calls Biden's AI chip curbs on China 'a failure' and praises Trump's changes

U.S. efforts to curtail China's access to advanced artificial intelligence chips have backfired, Nvidia (NVDA) CEO Jensen Huang said Wednesday, adding that the Biden administration's export restrictions didn't slow China's AI ambitions -- they accelerated them. Speaking to reporters at the Computex tech conference in Taipei, Huang said years of U.S. restrictions on AI chip exports were a strategic misfire that cost Nvidia billions and handed Chinese rivals a powerful incentive to innovate. "All in all, the export control was a failure," Huang said. "The local companies are very talented and very determined, and the export controls gave them the spirit, the energy, and the government support to accelerate their development." Nvidia, which was once dominant in China with a market share approaching 95% at the start of the Biden administration, now holds just 50%, Huang said. The company has been forced to write off "billions of dollars" in revenue after repeated rounds of U.S. export controls blocked sales of its most advanced chips -- even models designed to comply with restrictions. Huang endorsed President Donald Trump's recent rescinding of the Biden administration's AI diffusion rule, which would have imposed country-based limits on chip exports -- most notably China, due to national security concerns. "President Trump realizes that it's exactly the wrong goal," Huang said. "If the United States wants to stay in the lead, and if we would like the rest of the world to build on American technology, then we have to maximize AI diffusion, maximize the speed." The Trump administration has paved the way for a series of multibillion-dollar chip sales agreements across the Gulf region, which one analyst said was a "watershed moment" for Big Tech. Huang accompanied Trump to the Middle East earlier this month, where Nvidia inked deals to supply its top-tier GPUs to Saudi Arabia, the United Arab Emirates, and Qatar. Huang made it clear, however, that Nvidia still sees China as too important to ignore. Last month, he visited Beijing and met with top Beijing officials and the founder of AI firm DeepSeek to discuss chips that could avoid triggering U.S. sanctions, according to The Financial Times. "China has a vibrant technology ecosystem, and it's very important to realize that China has 50% of the world's AI researchers, and China is incredibly good at software," Huang said. "AI researchers are still doing AI research in China. If they don't have enough Nvidia, they will use their own." And that's already happening. Chinese chipmaker Huawei's domestically produced Ascend chips (which remain less capable than Nvidia's) are being installed in data centers under state guidance. Washington recently warned that companies using Huawei chips could face penalties under U.S. law, sparking fierce pushback from Beijing and a warning that enforcement of such measures could violate Chinese law -- potentially putting a halt to the progress the two countries have made recently in trade talks. For now, Nvidia is navigating a geopolitical minefield. It hasn't gotten everything it wanted from Trump -- the company recently took a $5.5 billion hit related to U.S. limits on Nvidia's H20 chips to China. But Huang's perspective is clear: Isolating China hasn't worked, and only a pragmatic, globally inclusive strategy will keep the U.S. -- and companies such as Nvidia -- at the front of the AI race. "America is not the only provider of AI technology," Huang said.

Nvidia CEO hails Trump's plan to rescind some export curbs on AI chips to China

TAIPEI, Taiwan -- The head of American chipmaker Nvidia praised President Donald Trump's move to modify U.S. curbs on the export of artificial intelligence chips to China, saying Wednesday that the Biden-era controls were a "failure" that had cost his and other U.S. companies billions of dollars in sales. Under former President Joe Biden, the United States rolled out a three-tiered system of export curbs on advanced chips aimed at regulating the global diffusion of AI, blocking China entirely. While Biden said the curbs were necessary to slow China's development of technology that could have military applications, critics said they could undermine U.S. tech leadership. The Trump administration said last week that it plans to rescind some of those curbs and replace them with its own restrictions. Nvidia's billionaire chief executive, Jensen Huang, said his company controls 50% of the market in China today, compared with almost 95% at the start of the Biden administration in 2021. "All in all, the export control was a failure," he told reporters at Computex, a top technology trade show in the Taiwanese capital of Taipei, saying the curbs were based on the "fundamentally flawed" assumption that the U.S. is the only source of AI technology. Huang, 62, said Chinese companies blocked from buying American products had instead turned to local sources such as Chinese tech giant Huawei, and that they had been spurred to make advances with as little outside help as possible. "The local companies are very, very talented and very determined," Huang said, "and the export control gave them the spirit, the energy and the government support to accelerate their development." Those companies "would love for us never to go back to China," he said, adding that China is home to 50% of the world's AI researchers and has an AI market he estimated would be worth $50 billion by next year. Nvidia said last month that it would write off about $5.5 billion in H20 AI chips it had specifically designed for the China market to comply with previous curbs after the Trump administration said those chips would also be restricted. "I really do hope that the U.S. government recognizes that the ban is not effective and give us a chance to go back and win the market as soon as possible," Huang said. Huang, who was with Trump on his Middle East trip last week along with other tech leaders, lauded the president for his "great reversal" of Biden's policy, known as the AI diffusion rule, saying Trump "realizes it's exactly the wrong goal." "He sees it very clearly that the race is on," Huang said, "and if the United States wants to stay ahead, we need to maximize, accelerate our diffusion, not limit it, because somebody else is more than happy to provide it." China's state-led investment in chips has probably exceeded $150 billion over the past decade, according to the Economist Intelligence Unit. Beijing has repeatedly criticized the U.S. over its chip curbs, including guidelines Washington issued last week that said companies anywhere in the world risked violating U.S. export controls if they used advanced Chinese chips such as Huawei's Ascend without a license. The Chinese Ministry of Commerce said Monday that the U.S. action "seriously undermines" the consensus the U.S. and China reached earlier this month on slashing their tariffs on each other's goods. On Wednesday, the ministry further accused the U.S. of "abusing export controls to suppress and contain China." It pledged to invoke China's anti-foreign sanctions law against anyone involved in enforcing the U.S. move, slamming it as "a typical example of unilateral bullying and protectionism."

Nvidia's CEO says attempts to control chip exports to China are a failure: 'If they don't have enough Nvidia, they will use their own.'

"AI researchers are still doing AI research in China," say Jensen Huang. Attempts by the US government to put a cap on China's development of AI technologies by limiting exports of GPUs has been a "failure". So says no less an authority on the subject than Nvidia CEO, Jensen Huang. The New York Times quotes Huang at the ongoing Computex show in Taipei, Taiwan denouncing GPU export controls. "AI researchers are still doing AI research in China," Huang said on Wednesday. "If they don't have enough Nvidia, they will use their own," he said. All of which means, "the export control was a failure." He may have a point. But then Nvidia does rather have a dog in this fight. Huang himself says that restrictions on Nvidia's H20 GPU will cost the company $15 billion in sales. So, it's not hard to understand why he might prefer those limitations to be lifted. Just for context, back in 2022 the former Biden administration imposed limits on the export of the most powerful GPUs from the US into China. Into the void left by restricted Nvidia exports has moved local outfit Huawei, whose GPUs currently do not match those of Nvidia for AI prowess. However, the fear is that the GPU export restrictions have only encouraged Huawei to put even more effort into closing the gap. Indeed, according to the New York Times, Nvidia is concerned about just that, with an adjacent worry that, "any advantage gained by Huawei in China could eventually spread into other markets, helping Huawei build a stronger foundation from which to compete around the world." Meanwhile, it's a little difficult to gauge Jensen Huang's strategy and loyalties in all this. He recently appeared with other business leaders as a guest of the Trump administration in Saudi Arabia. But Nvidia has also just unveiled what will be a new Global headquarters in Taiwan, which doesn't entirely square with the broader push to reshore tech manufacturing to the US. Likewise, the New York Times reports that, "the day after the US government opened an investigation into whether Nvidia's previous sales to China had violated its rules, Mr. Huang met with top economic and trade officials in Beijing." The plot, as they say, thickens. At the very least, it seems Huang and Nvidia are keeping their options fully open.

Nvidia says it is not sending GPU designs to China after reports of new Shanghai operation

Nvidia CEO Jensen Huang in Washington on April 30, 2025.Kevin Dietsch / Getty Images Nvidia said it won't be sending graphics processing unit plans to China following a report that the artificial intelligence chipmaker is working on a research and development center in Shanghai in light of recent U.S. export curbs. "We are not sending any GPU designs to China to be modified to comply with export controls," a spokesperson said in a statement to CNBC. The Financial Times was the first to report the news, citing two sources familiar with the matter. CEO Jensen Huang discussed the potential new center with Shanghai's mayor, Gong Zheng, during a visit last month, the FT reported. The center will assess ways to meet U.S. restrictions while catering to the local market, although production and design will continue outside China, according to the report. AI chipmakers such as Nvidia have been hit with major China roadblocks since 2022 as the U.S. began cracking down on sending advanced chips to China because of concerns of possible military use. Last week, the Trump administration said it would replace restrictions put in place under President Joe Biden with a "much simpler rule that unleashes American innovation and ensures American AI dominance." Nvidia said last month that it would take a $5.5 billion charge tied to selling its H20 GPUs in China and other countries. Huang has previously commented on the significance of China, which is one of the company's major market after the U.S., Singapore and Taiwan. He told CNBC this month that getting shut out of the world second-largest economy would be a "tremendous loss," estimating that China's AI market could hit $50 billion over the next two to three years. "We just have to stay agile," Huang told CNBC's Jon Fortt, in an interview alongside ServiceNow CEO Bill McDermott. "Whatever the policies are of the government, whatever is in the best interest of our country, we'll support," he added.

Nvidia CEO Jensen Huang criticizes US curbs on AI chip sales to China - SiliconANGLE

Nvidia CEO Jensen Huang criticizes US curbs on AI chip sales to China Nvidia Corp. Chief Executive Officer Jensen Huang on has criticized the U.S. government's restrictions on chip sales to China. Huang made the remarks at the Computex conference in Taipei Tuesday. During the event, Nvidia Corp. debuted a technology that makes it possible to move data between third-party chips using its NVLink interconnect. The company also updated its Isaac GR00T foundation model for powering robots. Huang called the U.S. export controls on AI chips a "failure" at Computex. "Chinese AI researchers will use their own chips," the Financial Times quoted the executive as saying. "They will use the second-best. Local companies are very determined, and export controls gave them the spirit, and government support accelerated their development. Our competition is intense in China." The U.S. government first restricted the sale of Nvidia's most advanced chips to China in 2022. The following year, officials expanded the curbs to cover more of the company's graphics cards. Exports of certain chipmaking equipment were restricted as well. This past January, the Biden administration introduced another set of curbs in a document called the Interim Final Rule on Artificial Intelligence Diffusion. It was designed to prevent China from obtaining AI chips via third countries. Under the policy, companies in most nations had to obtain a license to buy processors with "computational power equivalent to up to 320,000 advanced GPUs." "The fundamental assumptions that led to the AI diffusion rule in the beginning have proven to be fundamentally flawed," Huang said. "If the U.S. wants to stay ahead, we need to maximize and accelerate our diffusion, not limit it." The Trump administration rolled back the Interim Final Rule on Artificial Intelligence Diffusion earlier this month. A few weeks earlier, officials banned Nvidia from selling its H20 graphics card to China. The H20 is a scaled-down version of the company's H100 chip that was designed to comply with U.S. export rules. Huang criticized the ban at Computex and revealed that the company's share of the AI chip market in China has declined significantly over the past few years. "Four years ago, Nvidia had 95% market share in China. Today, it is only 50%," he detailed. "The rest is Chinese technology. They have a lot of local technology they would use if they didn't have Nvidia." Huang added that Nvidia's next chip for the Chinese market won't be based on the Hopper architecture, which powers the H20 and the H100. The reason is that the company has already "degraded the chip so severely" to comply with export controls, he explained. "It's not Hopper because it's not possible to modify Hopper any more." After the U.S. banned the sale of H20 chips to China, Nvidia revealed that it would have to make a $5.5 billion inventory writedown. Reuters reported in April that the company had received $18 billion worth of H20 orders during the first quarter. Customers in China accounted for 13% of Nvidia's revenue, or $17 billion, in the fiscal year ended Jan. 26.

NVIDIA's next AI GPU for China will be Blackwell, says H20 can't be modified anymore

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 founder and CEO Jensen Huang is here on the ground in Taipei for Computex 2025, where he met with the biggest business partners in Taiwan ahead of the show where he's provided some updates on its new China-exclusive AI GPUs. Huang said that NVIDIA's next AI GPU after its H20 chip won't be Hopper, saying: "it's not Hopper because it's not possible to modify Hopper anymore". We've previously heard rumors that the new H30 (and now possibly B30) was dropping HBM (High Bandwidth Memory) for consumer-class GDDR memory (probably GDDR7). Jensen provided the update during a livestream posted by Taiwan's Formosa TV News network, so it looks like NVIDIA will be jumping from the Hopper AI GPU architecture to Blackwell for China. We've seen NVIDIA's new RTX PRO 6000 Blackwell workstation GPUs packing a huge 96GB of GDDR7 memory, so the rumors of its new China-destined AI GPUs shifting to GDDR memory is now making more and more sense. GDDR7 isn't as fast as HBM3 or HBM3E -- and anywhere close to HBM4 with its upcoming Rubin AI GPUs -- but it's good enough to skirt under the continuously changing US export restrictions. Whatever NVIDIA releases in terms of a new AI GPU rocking GDDR7 memory should beat out Huawei's new Ascend AI chips, but Jensen has said himself to not count out Huawei as the Chinese firm is a "formidable" company.

NVIDIA plans new R&D center in Shanghai, should help its AI GPU business in China

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 is expected to unveil its new global HQ in Taipei, Taiwan this week with Computex 2025 starting in just a couple of days time, but now we're hearing news that NVIDIA is preparing to build a new R&D facility in Chinahai that would help the company stay competitive with AI GPUs in China. In a new report from the Financial Times, we're hearing that NVIDIA is reportedly looking to build a new research and development center in Shanghai, China, which would help the company stay competitive in China. NVIDIA has been hit with a sales dive over continuously tightened US export restrictions, so NVIDIA is working around that with this proposed new R&D facility in Shanghai. NVIDIA CEO Jensen Huang reportedly talked about his plans with Shanghai mayor Gong Zheng when the two met in the city last month, with the usual "according to two people with knowledge of the matter". NVIDIA is leasing a new office space in Shanghai that will house all of its existing employees, as well as room for expansion. According to FT's sources, the new R&D center would research the specific demands of customers and the complex technical requirements required to satisfy the United States' moving goal posts with export restrictions on high-end AI hardware. The actual core design and productivity will remain overseas, but due to legal sensitivity around transferring intellectual property to China, with NVIDIA saying: "We are not sending any GPU designs to China to be modified to comply with export controls". NVIDIA's new team Shanghai would also work on global R&D projects including verification of chip designs, optimizations of existing products and sector focus research including autonomous driving. Huang wants to also make sure there's access to top artificial intelligence talent that's based in China, with NVIDIA currently advertising roles based in Shanghai in preparation for its new R&D facility. This includes looking for new engineers that will help NVIDIA "guide the development of next-generation deep learning hardware and software, and develop and optimize ASIC designs that compete on a global scale". China represents around 14% of NVIDIA's total revenues in 2024 -- representing around $17 billion -- with Huang estimating this could rise up to be a $50 billion (or more) market in the next few years. NVIDIA CEO Jensen Huang said at a Milken Institute event last week: "We want to build the world's AI (where) American standards are being adopted around the world. If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable... they'll step in".

Nvidia CEO Jensen Huang Calls US Curbs on Advanced Chip Exports to China 'Failure'

Nvidia peer Advanced Micro Devices also said it expects to face charges of up to $800 million related to limits on sales of its MI308 chip to China. Nvidia (NVDA) CEO Jensen Huang reportedly called Washington's export curbs on the sale of AI chips to China a "failure" that would drive Chinese rivals to speed up developing their own semiconductors. "I think all along the export control was a failure," Huang said, according to The Wall Street Journal. "The local companies are very talented and very determined, and the export controls give them the spirit, energy and the government support to accelerate their development," The Journal reported Huang as saying. Huang suggested that could lead American firms like Nvidia to lose market share in China. "Four years ago, Nvidia had 95 per cent market share in China. Today, it is only 50 per cent," the Financial Times cited him as saying at the Computex technology show in Taipei on Wednesday. "The rest is Chinese technology. They have a lot of local technology they would use if they didn't have Nvidia." Nvidia declined to comment beyond Huang's remarks at the event. Last month, Nvidia said it would take a $5.5 billion charge due to new export curbs on the sale of its H20 chips to China. The H20 chip is less powerful than Nvidia's newer ones and had been tailored to meet prior export limits for the Chinese market. Nvidia peer Advanced Micro Devices (AMD) also said it expects to face charges of up to $800 million related to limits on sales of its MI308 chip to China. Nvidia is set to report its fiscal first-quarter results after the closing bell next Wednesday. Shares of the AI chipmaker were up about 2% in recent trading, and have added about 2% since the start of the year.

After Donald Trump, Nvidia CEO Jensen Huang now blames Joe Biden for the US chip crackdown, says it has backfired as China has accelerated chip development

Nvidia's CEO Jensen Huang warns that US export controls on AI chips are backfiring, spurring China's domestic AI chip industry growth. Nvidia's market share in China has significantly decreased, leading to a $5.5 billion loss due to the cancelled China-tailored H20 chip. Nvidia CEO Jensen Huang has raised an alarm, and this time, his complaint is directed at the Biden administration, as per a report. Addressing the Computex tech conference in Taipei, Huang cautioned that America's moves to hamper China's access to high-end AI chips have backfired, as China has accelerated its domestic AI growth, as per GuruFocus. Huang pointed out that rather than slowing China's AI plans, Washington's export controls have accelerated them, reported GuruFocus. The CEO highlighted that, "Four years ago, we had 95% of the market in China. Now we're down to 50%," as quoted in the report. Huang cited companies such as Huawei and other Chinese chipmakers, who have moved in to fill the gap, supported by government patronage and increased urgency, according to GuruFocus. He said, "They will use the second-best. Local companies are very determined," as quoted in the report. ALSO READ: Inside story of the fallout between Elon Musk and Donald Trump's key cabinet members that led the Tesla CEO to move away from D.C. The effect on Nvidia has been brutal. Huang pointed out that, because of the Biden-era export controls on AI chips, the company was forced to cancel its China-tailored H20 chip, taking a $5.5 billion write-down, GuruFocus reported. As per the report, Huang did not mince words, labelling the reasoning behind the policy "fundamentally flawed". Ironically, the Trump administration, which first escalated pressure on China with its own chip restrictions, now seems to agree with Huang, as per GuruFocus. The administration now has planned to reverse a proposed three-tier export licensing system, according to the report. If the reversal occurs, it could lead the way for US chip companies such as Nvidia to export more AI technology overseas, provided that it's not to adversary countries, as per GuruFocus. While the United States is debating its approach, Beijing is going full speed ahead. China's tech titans such as Tencent and Alibaba are aggressively securing onshore chip supply contracts, consistent with the government's initiative to limit dependence on American technology, according to the report. Even as Washington warns companies not to buy Chinese AI silicon, that may only be deepening the split, as per GuruFocus. However, the United States is partnering with the UAE to build mega AI data centres by using Nvidia chips, according to the report. GuruFocus wrote that "the real takeaway is this: trying to choke off China's access might have lit a fuse that's now burning faster than expected." What happened to Nvidia's market share in China? Huang stated that Nvidia's market share in China has dropped from 95% to 50%, with local companies like Huawei stepping in to fill the gap, as per GuruFocus report. How much did Nvidia lose because of export restrictions? Nvidia had to cancel its H20 chip designed for China, resulting in a $5.5 billion write-down.

Will Nvidia become victim in USA vs China AI war?

AI or Artificial Intelligence race between world's top two largest economies are getting interesting and Nvidia has become cynosure of all eyes.The Trump administration announced on Wednesday that it will continue its efforts to prevent advanced artificial intelligence (AI) technology from reaching China, dismissing requests from Nvidia's CEO Jensen Huang to relax chip export limitations to the country, Taipei Times reported on Friday. Though the Trump administration still perceives a security threat from expanding AI chip exports to China, Sriram Krishnan, a senior policy adviser for AI at the White House acknowledged that he aligns with Huang's perspective that restrictions on a broader array of US trading partners should be reassessed. "We have great respect for Jensen," stated Krishnan stated during a Bloomberg Television interview. "There remains bipartisan and widespread concern about the potential implications of these GPUs once they are physically in China," Krishnan said. According to the Taipei Times report, the Trump administration is reversing. It intends to replace an AI diffusion regulation established by former President Joe Biden, which, as Krishnan indicated, resulted in "GPU haves and GPU have-nots." "When it pertains to the rest of the world, we aim for an American AI ecosystem that starts from the GPUs and extends to the models and everything built upon that," Krishnan remarked. "On this point, Jensen and I share common ground," he added. Krishnan's comments followed Huang's strongest public criticism yet regarding the increasing US export restrictions aimed at China, Taipei Times reported. At the Computex industry conference in Taipei, Huang condemned the measures as a "failure" and called for the US to reduce barriers to chip sales in China, warning that American companies might lose their market share to competitors like Huawei Technologies Co. Huang indicated that China would represent a USD 50 billion opportunity in the coming year, as cited by the Taipei Times report. Q1. Who is President of USA? A1. President of USA is Donald Trump. Q2. Who is CEO of Nvidia? A2. CEO of Nvidia is Jensen Huang.

Nvidia CEO says next chip after H20 for China won't be from Hopper series

Nvidia CEO Jensen Huang confirmed the company will not release another Hopper-series chip for China due to US export restrictions. While evaluating alternatives, Nvidia plans a downgraded H20 version to retain market share amid rising competition. China, a key market, contributed $17 billion to Nvidia's revenue in the last fiscal year.Nvidia is evaluating how to address the China market after the US government placed limits on sales of its Hopper H20 chip there but will not put out another version from the Hopper series, CEO Jensen Huang said on Saturday. Asked what their next chip for China after the H20 was, he said: "It's not Hopper because it's not possible to modify Hopper anymore," Huang said, according to a livestream posted by Taiwan's Formosa TV News network. Huang, who has consistently said China is critical to Nvidia's growth, made a visit to China immediately after the US placed new restrictions on China-bound shipments of its H20 chips, the only AI chip the company can sell legally in China. Reuters reported earlier this month that Nvidia plans to release a downgraded version of the H20 chip for China in the next two months, as it seeks to prop up sales in the country, where it has lost market share to domestic rivals such as Huawei. The US Framework for Artificial Intelligence Diffusion, issued in January just a week before the end of former President Joe Biden's administration, aimed to limit AI chip exports to most countries. Huang also said that previous AI export regulations were wrong and should have been focused on maximising US technology globally. Trump has said he will cancel the AI diffusion rules that were introduced by the Biden administration. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales.

Nvidia plans China research centre as export curbs bite: Report

Nvidia is planning to establish a research centre in Shanghai to address Chinese market needs while complying with US export controls. However, core design and production will remain outside China. Amid tighter US chip restrictions, Nvidia faces growing competition from firms like Huawei, as China pushes for greater technological self-reliance in AI and semiconductors.US chipmaker Nvidia is planning to build a research and development centre in Shanghai, the Financial Times reported Friday, as tighter export restrictions imposed by Washington threaten sales in the key Chinese market. The tougher US controls in recent years have prevented the California-based firm from selling certain AI chips -- widely regarded as the most advanced in the world -- to China. As a result, it is now facing tougher competition from local players in the crucial market, including Huawei. Nvidia boss Jensen Huang discussed plans to set up a research and development centre in Shanghai with its mayor during a visit to the city last month, the FT reported, citing two unnamed people familiar with the matter. The site would "research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington's curbs", said the report. It added that "actual core design and production" would remain outside of China in order to comply with intellectual property transferral regulations. Nvidia did not confirm or deny the project when contacted by AFP, nor did Shanghai authorities. But a source close to the matter told AFP that Nvidia is "leasing a new space for existing employees", adding that "this is a continuation of our longstanding presence there". "We are not sending any GPU designs to China to be modified to comply with export controls," an Nvidia spokesperson told AFP, referring to graphics processing unit. During a visit to Beijing in April, Huang met with Vice Premier He Lifeng, telling him that he "looked favourably upon the potential of the Chinese economy", according to state news agency Xinhua. Huang said he was "willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation", Xinhua said. The tightened US export curbs come as China's economy wavers, with domestic consumers reluctant to spend and a prolonged property sector crisis weighing on growth. President Xi Jinping has called for the country to become more self-reliant as uncertainty in the external environment increases. Xi said last month that China should "strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system", according to Xinhua. Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that these can be used to advance Beijing's military systems and otherwise undermine US dominance in artificial intelligence.

China's progress in AI cannot be limited and should not be underestimated, says Nvidia CEO Jensen Huang

Jensen Huang, Nvidia CEO, said the idea to not have America compete in the Chinese market, where 50% of the developers are, makes no sense from a computing infrastructure and computing architectural perspective. Amid escalating technological rivalry between the United States and China, Nvidia CEO Jensen Huang underscored China's growing influence in artificial intelligence (AI), describing its progress as undeniable and impressive. In an interview with web portal Stratechery, Huang said the rapid rise of Chinese AI companies such as DeepSeek is impressive. "China's doing fantastic; 50% of the world's AI researchers are Chinese and you're not going to hold them back, you're not going to stop them from advancing AI. Let's face it, DeepSeek is deeply excellent work," he said. This was in reference to export controls the US has implemented on advanced chips (such as Nvidia's A100/H100) to prevent uncontrolled AI diffusion to China and other countries. In simple terms, AI diffusion refers to efforts to slow or control the spread of advanced AI technologies (especially foundational models and compute infrastructure) to geopolitical rivals. He said the idea to not have America compete in the Chinese market, where 50% of the developers are, makes no sense from a computing infrastructure and computing architectural perspective. "We ought to go and give American companies the opportunity to compete in China," he said. Also Read: US tech firms Nvidia, AMD secure AI deals as Trump tours Gulf states Huang warned that if US companies don't compete in China, it will in turn allow the Chinese to build a rich ecosystem and new platforms, which would not be American. Earlier this month, Nvidia announced partnerships in the Gulf region, notably with Saudi Arabia and Qatar, to advance AI infrastructure and capabilities. Huang said those countries have an "extraordinary opportunity". "They have an abundance of energy and a shortage of labour, and the potential of their countries is limited by the amount of labour that they have, the amount of people that they have," he said.

Nvidia CEO Jensen Huang Slams US Chip Export Curbs As 'Exactly Wrong For America,' Praises Chinese AI Researchers As 'World-Class' - NVIDIA (NASDAQ:NVDA)

In a wide-ranging interview at Computex 2025, Nvidia Corp. NVDA CEO Jensen Huang asserted that Chinese artificial intelligence researchers are "world-class" while criticizing U.S. chip export controls as counterproductive to America's technological leadership. What Happened: Speaking with Ben Thompson after his Computex keynote in Taiwan, Huang strongly criticized U.S. export restrictions that banned Nvidia's H20 chip sales to China, calling them "exactly wrong for America." He revealed that Nvidia wrote off $5.5 billion in inventory and walked away from approximately $15 billion in sales due to these restrictions. "China's doing fantastic, 50% of the world's AI researchers are Chinese and you're not going to hold them back," Huang said. "These are not Chinese AI researchers, they're world-class AI researchers. You walk up and down the aisles of Anthropic or OpenAI or DeepMind, there's a whole bunch of AI researchers there, and they're from China." Huang warned that preventing American companies from competing in China, where "50% of the developers are," makes "absolutely no sense from a computing infrastructure perspective." He advocated for allowing American companies to compete in China to "offset the trade deficit, generate tax income for the American people, build, hire jobs, create more jobs." See Also: Nike Lays Off Tech Workers, Shifts Focus To Outsourcing Amid Sales Slump Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Why It Matters: Huang's comments come amid intensifying U.S.-China tensions over technology exports, particularly AI chips. Nvidia recently faced additional export restrictions affecting its H20 processor sales to China, resulting in substantial financial losses. Huang previously told CNBC that China could become a $50 billion AI market within the next few years, representing a "tremendous loss" for American companies if they cannot participate. The Nvidia CEO also emphasized the economic potential of AI, predicting that AI and robotics will likely expand global GDP by addressing labor shortages. He suggested that businesses would readily pay "$100,000 a year" for AI assistants to amplify human productivity, especially in sectors struggling with staffing. Read Next: GOP Megadonor Ken Griffin Donates $15 Million, Lends Rare US Constitution And Bill Of Rights Ahead Of America's 250th Anniversary Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$135.01-0.41%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum85.55Growth94.95Quality93.75Value6.40Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Trump Administration Won't Back Down On AI Chip Restrictions On China At All, Denies "Easing" Request By NVIDIA's Jensen Huang

The US administration doesn't plan to stop AI curbs on China, even after the request of the nation's largest AI chip manufacturer, NVIDIA. NVIDIA's CEO, Jensen Huang, hasn't been entirely in line with what the US is doing regarding restricting China's AI developments, since he has voiced opposition to the "AI Diffusion" rule, ever since the Biden administration initially introduced it. NVIDIA's CEO claims that the Trump administration's policy would force China to develop its ecosystem, which would not only be a "nail in the coffin" for NVIDIA, but it would also make the US lose its dominance in the segment. However, it seems like the White House doesn't favor what Jensen has been saying over the past few days. We obviously have huge respect for Jensen. When it comes to inside China, I do think there is still bipartisan and broad concern about what can happen to these GPUs once they're physically inside. When it comes to the rest of the world, we want the American AI stack, starting from the GPUs to the models to everything on top. - Sriram Krishnan, Senior Policy Adviser for AI via Yahoo The Trump administration didn't hold back on imposing restrictions on China at all, since even after taking a pledge of a $500 billion investment from NVIDIA, they decided to ban the export of the H20 AI accelerator. In the recent guidance for the new AI Diffusion policy, the US plans to restrict the use of Huawei's chips in China only, and any other foreign nation using them would be in direct violation. So it is safe to say that the US isn't expected to cool down on its crackdown against China's AI developments. NVIDIA's CEO has put up his case against the US's approach towards China, claiming the country is holding back from a massive opportunity. He says that more than 50% of AI engineers come from China, and there is no way that China would hold back on its efforts. DeepSeek and Huawei's achievements are examples of the talent available in the region. According to Jensen, the diffusion rule should allow American chips to be used by Chinese entities to make the US a dominant force. It would be interesting to see how NVIDIA adjusts its operations in China, given that the US won't back down on its restrictions. For now, Team Green is expected to introduce a Blackwell-based AI solution for the Chinese markets, which could drop as soon as July.

Jensen Huang-Led Nvidia Plans New Shanghai Research Hub To Stay Competitive In China As US Export Curbs Threaten AI Chip Sales: Report - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA is reportedly expanding its research footprint in China with a new Shanghai-based R&D center, signaling a strategic push to retain AI dominance in the region amid tightening U.S. export restrictions. What Happened: Nvidia CEO Jensen Huang met with Shanghai Mayor Gong Zheng last month to discuss plans for the new facility, reported the Financial Times, citing two people with knowledge of the matter. Nvidia is already leasing new office space in Shanghai to house current staff and accommodate the expansion. While the company said that no GPU designs will be sent to China, the R&D center will focus on optimizing existing products, verifying chip designs and exploring use cases like autonomous driving, the report noted. See Also: Nvidia Modifies H20 Chip For China After US Restrictions Block Sales, Aims To Deliver New Version By July: Report "We are not sending any GPU designs to China to be modified to comply with export controls," Nvidia told the publication. Why It's Important: The move underscores Nvidia's delicate balancing act -- maintaining a presence in one of its largest overseas markets while adhering to U.S. export controls. China accounted for roughly 14% of Nvidia's revenue in 2023, or about $17 billion. Huang has said the market could be worth as much as $50 billion. Huang previously warned that limiting access to China's AI market could harm not only Nvidia's business but also U.S. jobs and technological progress. His remarks followed reports that Nvidia had notified major Chinese customers -- including Alibaba Group BABA, ByteDance and Tencent Holdings TCEHY -- that it is developing a modified version of AI chips to meet U.S. export restrictions. Price Action: Nvidia shares slipped 0.096% to $134.70 in after-hours trading, according to Benzinga Pro. According to Benzinga Edge Stock Rankings, Nvidia currently holds a growth score of 95.06%. Click here to see how it stacks up against top tech firms like AMD, Qualcomm, Alibaba and Tencent. Photo Courtesy: Hepha1st0s On Shutterstock.com Read Next: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd $124.00-7.50% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 95.25 Growth 73.65 Quality 48.27 Value 78.23 Price Trend Short Medium Long Overview NVDANVIDIA Corp $134.70-0.47% TCEHYTencent Holdings Ltd $66.16-2.53% Market News and Data brought to you by Benzinga APIs

NVIDIA's CEO Reveals Next Chip For China Will Likely Be a Blackwell Model, Says H20 Cannot Be Modified Anymore

NVIDIA is reportedly preparing for a more potent chip for the China AI market, as CEO Jensen Huang has revealed that they won't cut down on Hopper any further. After the recent H20 export restriction by the US, NVIDIA is exploring new options for the Chinese markets, in an attempt to maintain its influence in the region. While speaking to a Taiwanese media outlet (via Reuters), Huang revealed that the next chip for China will not be from the Hopper lineup, since the firm can no longer modify it further to comply with US restrictions. So, it seems like NVIDIA will switch to a new architecture for the Chinese market, and the leading candidate is likely Blackwell, which we'll discuss ahead. A report by Nikkei Asia claims that NVIDIA plans to introduce a new Hopper chip for China, but it won't be the leading option. This time, Team Green plans to utilize GDDR7 memory modules instead of HBM to comply with the bandwidth restrictions. It will be a similar option to NVIDIA's RTX PRO GPUs, but instead, it will employ the Hopper architecture. Moreover, NVIDIA's Blackwell chip for the Chinese market will also feature GDDR7 instead of HBM, and this looks to be the new move Team Green will employ to meet the performance restrictions. Interestingly, despite all the differences, the firm's new "China-specific" chips are still said to be better than Huawei's existing solutions since NVIDIA would leverage its superior architectural capabilities and software ecosystem. However, the uncertainty surrounding using NVIDIA products has ultimately forced Chinese firms to opt for in-house options, such as the Ascend chips from Huawei, and this has bothered NVIDIA to the point where Jensen now calls competition from China a "formidable" one. It would be interesting to see how NVIDIA stays relevant in China, given that Jensen has expressed intentions in the past to remain committed to the nation, but with growing relations with the Middle East, Team Green might have to pick sides.

NVIDIA Starts to Lose Ground In China, Market Share Drops Down to 50% As Huawei Manages To Capitalize On Team Green's Desperate Position

NVIDIA's CEO has revealed at a conference at Computex that the firm's share in China's AI market has almost halved after the Biden-era export restrictions, which is alarming. There's a lot of uncertainty surrounding NVIDIA and its business in China, given that the US believes that Team Green's high-end AI chips are ending up in hostile nations, threatening national security. The US has been catering to this issue by implementing strict regulations, which have tremendously hindered NVIDIA's business in China. The round of restrictions initially started with the Biden era, and since then, the firm has said to have lost many customers in China, hurting revenue streams and its decades-long influence over the markets. The fundamental assumptions that led to the AI diffusion rule in the first place, have been proven to be fundamentally flawed. From the start of U.S. President Joe Biden's administration, Nvidia's China market share has dropped to 50% from 95%, Huang said. - Reuters NVIDIA's revenue in China doesn't come from the H20 AI accelerator alone, as the firm was previously said to be selling "millions" of AI GPUs, particularly the H100 and the A100 models. Jensen has claimed that China is a $50 billion opportunity for NVIDIA, yet the US restrictions have held them back, to the point that the company's market share has dropped to 50%, which means that there's an equal force in power as well, and we all know who it is. Yes, you guessed it right. It's none other than Huawei who is now a formidable rival to NVIDIA, and the company has managed to significantly upscale its AI solutions even since the US export restrictions came in. The company's notable offerings include the Ascend 910C and 910B AI chips, which have been adopted by several domestic tech giants like Tencent, Baidu, and ByteDance, since they are great for inference workloads. Moreover, Huawei's first rack-scale solution, the CloudMatrix 384, competes with NVIDIA's Blackwell GB200 NVL72 configuration, which shows the race is definitely on. NVIDIA's CEO said that the world cannot let China build its own AI ecosystem; otherwise, the US will lose its AI dominance. This implies that Chinese tech could very well match Western standards in the upcoming years. If the restrictions continue at their current pace on NVIDIA, Team Green could eventually be forced out by domestic competition.

NVIDIA Plans To Develop a New R&D Facility In Shanghai As Jensen Hopes To Rescue The Firm's Drowning Business In China

NVIDIA is now reportedly developing a new R&D center in China, as CEO Jensen Huang worries that they might lose their grip on the market. Team Green isn't having a great time in the Chinese markets, since the rounds of US export controls are making it difficult for the firm to stay committed to China. On top of that, with growing competition from the likes of Huawei, NVIDIA is losing its spot as the leading AI firm in the region, and this has apparently concerned Huang, who has now revealed plans to develop a dedicated R&D center in Shanghai, China. The report comes from The Financial Times, where it is claimed that NVIDIA now plans to directly address the needs of its Chinese customers through a "more localized" AI solution. To ensure that the core technology remains outside of China, NVIDIA won't be sending any core design and production to the centre; rather, the research will be driven by local talent. The Shanghai R&D center will also ensure that NVIDIA retains the top talent in China, rather than giving it away to the likes of Huawei, which is known for poaching employees from other companies. NVIDIA's CEO said previously that they cannot ignore the Chinese market at all, despite US restrictions, since someone else will step in if they don't. We want to build the world's AI [where] American standards are being adopted around the world. If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable . . . they'll step in. - NVIDIA's CEO at Milken Institute event NVIDIA is currently offering its L20 AI chips to the Chinese markets, after the recent H20 restriction, and the company has plans to introduce new Hopper and Blackwell variants, complying with US regulations. However, major Chinese tech firms are now resorting to alternatives, such as those from Huawei, as the uncertainty with options from NVIDIA has bothered them to a point where they are forced to make a choice. So, it won't be wrong to say that Team Green is losing ground in China.

Nvidia Abandons Hopper Series Chip Release In China Due To US Restrictions: 'Not Possible To Modify Hopper Anymore' - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. NVDA has decided not to launch a new chip from its Hopper series in China. This decision comes in the wake of U.S. government restrictions on H20 chip sales, as confirmed by Nvidia's CEO, Jensen Huang. What Happened: Huang, during a livestream by Taiwan's Formosa TV News network, stated that modifying the Hopper series further is not feasible, reported Reuters. Earlier this month, Reuters reported that Nvidia intends to launch a downgraded version of the H20 chip in China within two months. This strategy aims to increase sales in a market where Nvidia has lost ground to domestic competitors like Huawei. "It's not Hopper because it's not possible to modify Hopper anymore," confirmed Huang. After the U.S. imposed new restrictions on H20 chip exports to China, Huang visited the country. The H20 chip is the only AI chip that Nvidia can legally sell in China, a market that Huang has often highlighted as crucial to Nvidia's growth. The U.S. Framework for Artificial Intelligence Diffusion, released in January, sought to restrict AI chip exports to the majority of countries. Huang has previously criticized these export controls and called for the global expansion of U.S. technology. SEE ALSO: Bitcoin Breaks $107,000, Ethereum Dips, Dogecoin Rallies As 'Greed' Sentiment Takes Over: Analyst Predicts BTC 'Primed' For A New All-Time High - Grayscale Bitcoin Mini Trust (BTC) Common units of fra Why It Matters: China accounted for 13% of Nvidia's total sales in the fiscal year ending January 26, generating $17 billion in revenue for the company. The decision not to launch the Hopper series chip could impact Nvidia's market share and revenue in China. Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Last week, Nvidia and other chip stocks gained after reports indicated plans by the Trump Administration to repeal the Biden administration's artificial intelligence diffusion. This policy created three broad tiers of access for countries seeking AI chips and would have taken effect on May 15. Meanwhile, Nvidia is planning to expand its research footprint in China with a new Shanghai-based R&D center. This move signals a strategic push to retain AI dominance in the region amid tightening U.S. export restrictions. Benzinga Edge Stock Rankings shows that NVDA had a strong price trend over the short, medium and long term. Its momentum ranking was strong at the 84th percentile, whereas its value ranking was poor at the 7th percentile; the details of other metrics are available here. Over the past month, Nvidia stock has surged over 39%. READ MORE: Robert Kiyosaki Predicts Bitcoin To Reach $250,000: 'Buy More. Do Not Sell.' - Benzinga Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$132.10-2.02%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum83.62Growth95.02Quality94.05Value6.46Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Jensen Huang slams US controls on chip exports to China as a 'failure'

The Nvidia CEO said the Biden-era curbs only helped propel China's own technological advancements Nvidia CEO Jensen Huang minced no words when lambasting the US government during a visit to Taiwan, condemning the US government's controls on exports of chips to China as a "failure" that has propelled China's advancements in semiconductors. Reports from multiple outlets on Wednesday relayed Huang's remarks at the Computex technology show in Taipei. "All in all, the export control was a failure," Huang said, a comment likely referring to US restrictions on semiconductor exports to China, which began under President Joe Biden. The Trump administration has recently slammed the brakes on Nvidia's attempts to export its H20 chips -- AI chips that have been downgraded to be cleared for Chinese sales. Huang further emphasized how export restrictions would only "accelerate [China's] development" in the chip field. "Four years ago, at the beginning of the Biden administration, Nvidia's market share in China was nearly 95%. Today it is only 50%. The rest of Chinese technology. They have a lot of local technology they would use if they didn't have Nvidia," Huang commented. "Chinese AI researchers will use their own chips. They will use their second-best. Local companies are very determined, and export controls gave them the spirit, and government support accelerated their development." As Nvidia's endeavors in the Chinese market are being threatened, Huang is publicly calling for the US government to ease restrictions. China accounts for 13% of the company's total sales, but the percentage is expected to shrink due to stronger export control measures. Whether a different product will be able to make up for the sales gap caused by the H20 remains to be seen. Huang dismissed the possibility of producing new chips for the Chinese market as Nvidia has already "degraded the [H20] so severely." Huang's comments seem to have considered the recent movements of the Trump administration. The administration recently stated that it would rescind Biden-era curbs meant to limit AI chip exports and implement new checks. The AI diffusion rule that was set to go into effect on May 15 would have assigned tiers to different countries that would determine limits on the amount of AI chips that they could import. "The fundamental assumptions that led to the AI diffusion rule in the beginning have proven to be fundamentally flawed," Huang said. "If the US wants to stay ahead, we need to maximize and accelerate our diffusion, not limit it."

Nvidia CEO praises Trump move to scrap some AI export curbs

TAIPEI - U.S. export controls on artificial intelligence chips to China were "a failure" as they have cost American companies billions of dollars in lost sales, Nvidia Chief Executive Jensen Huang said on Wednesday. Huang's comments were levelled at the Biden administration's AI diffusion rule that sought to curb exports of sophisticated AI chips by dividing the world into three tiers, with China blocked entirely. The Trump administration has said it is going to modify the rules. "All in all, the export control was a failure," Huang said adding, "The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, have been proven to be fundamentally flawed." The U.S. block on sales of advanced AI chips to China has forced companies there to buy semiconductors from Chinese designers such as Huawei, while also spurring China to invest aggressively to develop a supply chain that doesn't rely on manufacturers outside the country. The Nvidia chief executive said that despite the U.S. controls, research continues, which requires vast sums of capital to acquire the necessary AI infrastructure. At a press conference at the annual Computex event in Taipei, Huang praised Trump's approach to AI and said by reversing the prior restrictions, the president demonstrated he understands U.S. companies are not the only providers of such technology. "President Trump realizes it's exactly the wrong goal," he said in reference to the prior rules. From the start of U.S. president Joe Biden's administration, Nvidia's China market share has dropped to 50 per cent from 95 per cent, Huang said. Trump administration officials are weighing discarding the tiered approach to chip export curbs and replacing it with a global licensing regime with government-to-government agreements, which could give the U.S. clout in trade talks. More than half the world's AI researchers are based in China and because of the U.S. export controls on AI chips those experts have been forced to turn to local Chinese technology, Huang said. "Our competition in China is really intense," Huang said. "They would love for us never to go back to China." Huang estimated the entire AI market in China would be worth roughly US$50 billion next year, which represented a significant opportunity for the company. At the Computex event, Nvidia announced several new technologies and businesses that will expand its $130.5 billion revenue. The company said in April it would take $5.5 billion in charges after the Trump administration limited exports of its H20 artificial intelligence chip to China, a key market for one of its most popular chips. Earlier this week, Huang estimated that the H20-related revenue damage would amount to roughly $15 billion. But Nvidia is working on a version of its current-generation Blackwell AI chip that will include a less speedy form of memory to comply with restrictions on the typical advanced memory included on AI chips, according to two sources familiar with the matter. In 2022, the Biden administration effectively banned exports of advanced microchips and equipment to produce advanced chips by Chinese chipmakers, part of an effort to hobble China's semiconductor industry and in turn the military. After those controls were implemented, Nvidia began designing chips such as H20 that would come as close as possible to U.S. limits. China on Monday urged the United States to "immediately correct its wrongdoings" and stop "discriminatory" measures following U.S. guidance warning companies not to use advanced computer chips from China, including Huawei's Ascend AI chips. The U.S. action seriously undermined consensus reached at the high-level bilateral trade talks in Geneva, a statement from China's commerce ministry said, vowing resolute measures if the U.S. continues to "substantially" harm China's interests.

Nvidia CEO Huang calls US AI chip controls on China a 'failure' By Investing.com

Investing.com-- NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang said on Wednesday that U.S. export restrictions on artificial intelligence chips to China had failed to prevent Beijing's advancements in the industry, pushing businesses towards locally-developed silicon. "I think, all in all, the export control was a failure," Huang told reporters at Taiwan's Computex conference. "The export control gave (local companies) the spirit, the energy, and the government support to accelerate their development." Huang also noted that Nvidia's market share in China slumped to 50% from 95% seen during the start of former U.S. President Joe Biden's administration. Biden had overseen a slew of restrictions on the export of crucial AI tech to China, with President Donald Trump having largely maintained or even deepened the restrictions. The U.S. Department of Commerce had last week issued new guidance aimed at further restricting China's chip industry, with the agency stating that use of certain chips from Huawei violated U.S. export laws. China decried the guidance, accusing the U.S. of bullying and violating international law. China also warned that the U.S. chip controls threatened to undermine a recent trade truce between the two countries. Nvidia was blocked from selling its most advanced AI chips in China by the Biden administration, and until this year, was selling a lower-spec H20 chip, which was still heavily used by Chinese companies. But new Trump-era export controls now block Nvidia from selling the H20 in China, with the company reportedly developing a new chip in line with U.S. regulations. The U.S. restrictions saw Chinese firms turn to locally produced alternatives, specifically from Huawei. China was also seen aggressively investing in local chipmaking, ramping up the foundry capacity of major producers such as Semiconductor Manufacturing International Corp (HK:0981). China still represents a major market for Nvidia, with the company having recently committed to a new research and development center in Shanghai.

NVIDIA's Huang blasts U.S. export rules, points to $15 billion in missed sales By Investing.com

Investing.com -- NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang sharply criticized U.S. export restrictions on AI chips, warning that the rules are diminishing America's technology leadership while inflicting heavy financial damage on the company. "If the goal of the diffusion rule is to ensure that America has to lead, the diffusion rule as it was written will exactly cause us to lose our lead," Huang said in a recent Stratechery interview. The company has been barred from selling advanced chips like the H20 to China, a key market for its AI infrastructure. As a result, Huang revealed that NVIDIA wrote off $5.5 billion in inventory and forfeited approximately $15 billion in sales. "No company in history has ever written off that much inventory," Huang said. "We walked away from $15 billion of sales and probably... $3 billion worth of taxes." Huang argued that cutting off China risks unintentionally strengthening rival ecosystems by forcing them to innovate domestically beyond U.S. influence. "If we don't compete in China, and we allow the Chinese ecosystem to build a rich ecosystem because we're not there to compete for it... their leadership and their technology will diffuse all around the world," he warned. He emphasized that AI is a "full stack" technology and cannot be regulated effectively by restricting just one layer, such as semiconductors. "You can't just say, 'Let's go write a diffusion rule, protect one layer at the expense of everything else,' it's nonsensical," he added. Instead of limiting exports, Huang urged policymakers to focus on expanding the global reach of American platforms and technologies. "The idea of AI diffusion limiting other countries' access to American technology is a mission expressed exactly wrong, it should be about accelerating the adoption of American technology everywhere before it's too late," he said.

Nvidia says US export controls on AI chips to China were 'a failure'

TAIPEI (Reuters) -U.S. export controls on artificial intelligence chips to China were "a failure", Nvidia Chief Executive Jensen Huang said on Wednesday. "All in all, the export control was a failure," Huang said adding, "The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed." The U.S. block on sales of advanced AI chips to China has forced companies there to buy semiconductors from Chinese designers such as Huawei, while also spurring China to invest aggressively to develop a supply chain that doesn't rely on manufacturers outside the country. Huang's comments came after China on Monday urged the United States to "immediately correct its wrongdoings" and stop "discriminatory" measures following the U.S. guidance warning companies not to use advanced computer chips from China, including Huawei's Ascend AI chips. The U.S. action seriously undermined consensus reached at the high-level bilateral trade talks in Geneva, a statement from China's commerce ministry said, vowing resolute measures if the U.S. continues to "substantially" harm China's interests. Huang, speaking at the annual Computex event in Taipei, said Nvidia's market share in China dropped to 50% from 95% at the start of former U.S. President Joe Biden's administration. (Reporting By Max Cherney and Wen-Yee Lee in Taipei; Editing by Anne Marie Roantree, Tom Hogue and Sonali Paul)

Nvidia seeks Shanghai R&D site after US chip curbs, say sources

HONG KONG (Reuters) -Nvidia is seeking a site in Shanghai for a research and development centre, three sources close to the matter said, reflecting the strategic significance of the Chinese market where U.S. curbs on advanced chip exports have hit sales. The U.S. chipmaker began the search in early 2025 and is primarily evaluating locations in Shanghai's Minhang and Xuhui districts, one of the sources said. The project gained momentum after a surprise visit to China by Nvidia CEO Jensen Huang last month, said two of the sources. Huang, who has consistently said China is critical to Nvidia's growth, made his visit immediately after the U.S. placed new restrictions on China-bound shipments of its H20 chips, the only AI chip the company can sell legally in China. Huang met senior Chinese officials, including Vice Premier He Lifeng and Shanghai's mayor Gong Zheng. Reuters reported earlier this month that Nvidia plans to release a downgraded version of the H20 chip for China in the next two months, as it seeks to prop up sales in the country, where it has been lost market share to domestic rivals such as Huawei. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales. The local government of Shanghai, which hosts China's largest foreign business community, including firms such as Tesla, has expressed willingness to offer incentives for the Nvidia project, including tax reductions, said two of the sources. The local authorities are also considering offering a substantial amount of land to Nvidia for its China R&D centre, one source added. Nvidia declined to comment, while the Shanghai city government did not immediately respond to a request for comment. The sources declined to be named, as the plan is not public. Following his visit to China, Huang told CNBC that the country's AI market could reach approximately $50 billion within the next two-to-three years. He said that being excluded from this rapidly expanding sector would represent a "tremendous loss" for Nvidia, especially as competition with Huawei intensifies. During an earnings call in February, before H20 chip sales to China were restricted, Nvidia executives said the company's sales to China were about half the level before U.S. export controls. Since 2022, the U.S. government has imposed restrictions on the export of Nvidia's most advanced chips to China, citing concerns over potential military applications. The Financial Times first reported on Friday about Nvidia's plan to build a R&D centre in China. (Reporting by Julie Zhu, Clare Jim and Beijing Newsroom; Additional reporting by Che Pan and Max Cherney; editing by Barbara Lewis)