Nvidia CEO Says U.S. Export Controls
Erase Company’s China Market Share from 95% to Zero
Nvidia
CEO Jensen Huang revealed that the company’s market share in China’s advanced
AI chip sector has plummeted from 95% to zero due to U.S. export restrictions.
Speaking at a Citadel Securities event in New York, Huang highlighted that
high-performance chips like the A100, H100, and H200 are now completely barred
from Chinese sales.
Huang
warned that Nvidia’s absence could harm both American and Chinese technological
leadership, as China hosts nearly half of the world’s AI researchers.
Meanwhile, Chinese AI chip firms, including Huawei, are rapidly advancing
domestic alternatives. Even Nvidia’s U.S.-approved H20 chip faces hurdles, with
a Chinese security probe and client hesitancy limiting adoption.
The
Cyberspace Administration of China has reportedly instructed domestic tech
companies, including ByteDance and Alibaba, to halt testing and purchases of
Nvidia chips, signaling a complete shutout of Nvidia from the Chinese AI chip
market. Huang stressed the risks of losing the market to domestic competitors
and called for a reconsideration of policies that could impact global AI
collaboration.
Nvidia,
the American semiconductor giant, has seen its dominance in China’s advanced chip
market vanish, with its market share dropping from 95% to Zero due to stringent
US export controls, according to CEO Jensen Huang. Speaking at a Citadel Securities
event in New York earlier this month, Huang revealed that Nvidia is completely barred
from selling its high-performance AI chips, including the A100, H100, and H200 models,
to Chinese companies since restrictions began in 2022.
A
video of the interview was released recently. Huang expressed hope for a policy
shift, stating, “We will continue to explain and inform and hold on to hope for
a change in policy.” He emphasized that Nvidia’s exclusion from China not only harms
the company but also has broader implications for both China and the U.S. “What
harms China could oftentimes also harm America, and even worse,” Huang said. He
further highlighted China’s significant role in global AI development, with roughly
50% of the world’s AI researchers.
Rise of Chinese AI chip
companies
Nvidia
CEO's remarks come as China carries on with a nationwide push for semiconductor
self-sufficiency. Chinese AI and semiconductor contenders have rushed to launch
domestic alternatives, eroding Nvidia’s once-dominant market share. Huawei’s advancements,
including clustering methods to bypass Nvidia’s technology and cutting-edge manufacturing
techniques, signal China’s aggressive push for semiconductor self-sufficiency.
Despite
receiving US approval to sell a less powerful H20 chip tailored for the Chinese
market, Nvidia faces further challenges. Chinese authorities launched a security
investigation into the H20, and local clients were advised to avoid the product,
further limiting Nvidia’s foothold. Huang warned that excluding Nvidia from China
risks ceding the market to domestic competitors like Huawei Technologies, which
recently unveiled an ambitious AI chip roadmap.
“It’s
a mistake not to have those researchers build AI on American technology,” Huang
said, raising concerns about balancing U.S. technological leadership with global
collaboration. As China accelerates its domestic chip development, Nvidia’s absence
from the market could reshape the global AI and semiconductor landscape.
China to tech companies:
You cannot buy AI chips from Nvidia
Nvidia
recently got shut out of the Chinese market after China’s internet regulator, the
Cyberspace Administration of China, reportedly banned domestic tech companies from
buying Nvidia AI chips. According to a report by Financial Times, the Chinese agency
also told tech companies, including ByteDance and Alibaba, to stop testing and ordering
Nvidia’s RTX Pro 6000D server, a device designed specifically for the market in
China.