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yesterday

Nvidia CEO Calls U.S. AI Chip Export Controls a Strategic Failure

Jensen Huang warns that restrictions have halved Nvidia's China market share, energized Chinese innovation, and cost billions in lost revenue.

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Nvidia's Jen-Hsun Huang on stage during the GTC 2025 keynote

Overview

  • Nvidia CEO Jensen Huang criticized U.S. export controls on AI chips to China, calling them counterproductive and a failure at the Computex 2025 conference in Taipei.
  • Huang revealed that Nvidia's market share in China's AI chip sector has dropped from 95% in early 2021 to 50% today due to successive U.S. restrictions.
  • The April 2025 U.S. licensing mandate on Nvidia's H20 chip triggered a $5.5 billion writedown, compounding financial losses for the company.
  • Huang praised the Trump administration's recent rescind of the Biden-era AI diffusion rule, which allowed Nvidia to secure significant deals in the Middle East.
  • He warned that U.S. policies have accelerated Chinese domestic chip innovation, with firms like Huawei closing the technology gap under government support.