The US government’s efforts to limit China’s access to advanced computer chips have had the opposite effect, according to Nvidia’s chief executive Jensen Huang. The export controls, driven by economic and security concerns, have forced Chinese companies like Huawei to accelerate their development of AI chips.
Nvidia was required to modify its most powerful chips to make them less potent, reducing its dominance in China. The US government also imposed a $5.5 billion fine on Nvidia for not selling the modified chips to China. However, this move has allowed domestic Chinese companies to fill the gap, and Huawei’s chips are now being used by Chinese companies to provide AI services.
Huang said that AI researchers in China will continue to work with or without Nvidia’s chips, citing the country’s government support as a key factor in its ability to develop AI technology. Despite the challenges posed by US regulations, Huang has vowed to keep selling AI chips in China and has met with top economic officials in Beijing.
Nvidia is concerned that Huawei’s gain in China could spread to other markets, helping the company build a stronger global presence. The US controls have reduced Nvidia’s market share in China from nearly 95% to 50%. Meanwhile, countries like Saudi Arabia and the UAE are lining up to buy Nvidia chips, with the Trump administration positioning itself as a key player in the deal.
Huang criticized the Biden administration’s approach, saying it was important for Chinese AI developers to work on systems made by Nvidia or American technology.
Source: https://www.nytimes.com/2025/05/21/business/nvidia-china-washington-chip-controls-failure.html