Jensen Huang, Chief Executive Officer of Nvidia, has voiced strong criticism of US export controls on artificial intelligence (AI) chips, calling them counterproductive and warning they have inadvertently helped accelerate China’s domestic AI industry.
Speaking at the Computex technology conference in Taipei, Huang argued that the restrictions, aimed at limiting China’s access to advanced semiconductors, have ultimately failed in their intended goal.
“The export control was a failure,” Huang said, noting that the curbs have energized China’s AI sector, boosting the growth of local players like Huawei. “Local companies are very talented and very determined, and the export controls gave them the spirit, energy, and the government support to accelerate their development.”
Since 2022, the US has tightened regulations on the export of high-performance chips and related technologies to China, citing national security concerns. These measures have particularly impacted Nvidia, which had previously enjoyed a dominant 95% market share in China for AI chips. According to Huang, that figure has now dropped to around 50%, with Chinese firms filling the gap.
Despite these challenges, Huang emphasized the importance of maintaining a commercial presence in China, which he projected to be a $50 billion AI market by next year.
“China is the second-largest computer market in the world,” he said. “If we’re not there, others will be.”
Huang also praised former President Donald Trump for rescinding a proposed regulation from the Biden administration that would have expanded restrictions on global AI chip sales. Known as the AI diffusion rule, the draft policy would have placed country-specific caps on US chip exports.
“President Trump realizes that it’s exactly the wrong goal,” Huang said, arguing instead for maximizing the global reach of US AI technologies.
Shortly after the rule was withdrawn, Nvidia participated in multibillion-dollar chip deals in the Middle East, including sales to Saudi Arabia, the United Arab Emirates, and Qatar. Huang was present alongside Trump during the region’s visit, which US officials described as part of an effort to promote American AI companies on the global stage.
Still, Nvidia has not been exempt from newer restrictions. In April, the Trump administration added Nvidia’s China-focused H20 chip to the list of banned exports, prompting the company to take a $5.5 billion charge on unsellable inventory. Huang said the company cannot further downgrade the chip to meet compliance thresholds, and reiterated that if US companies are barred from competing in China, local alternatives will take over.
“AI researchers are still doing AI research in China,” he said. “If they don’t have enough Nvidia, they will use their own.”
Washington’s controls have drawn mixed reactions within the US tech community. While some view them as necessary to maintain a technological edge, others, including Nvidia, believe they undermine American competitiveness by encouraging international customers to turn to alternative suppliers.
As Nvidia continues expanding globally, Huang has met with leaders from the US, China, and other regions, emphasizing the geopolitical importance of AI and the need for open markets.
“If the United States wants to stay in the lead,” he said, “we have to maximize the diffusion of AI and the speed of adoption globally.”
Bloomberg, the Wall Street Journal, the New York Times, and the Financial Times contributed to this report.
