Nvidia CEO Criticises US AI Chip Ban on China, Calls It a 'Failure'
- tech360.tv
- 3 hours ago
- 2 min read
Nvidia Chief Executive Officer Jensen Huang has sharply criticised US export restrictions on AI chips to China, calling the policy a failure and urging the White House to reverse course.
Speaking at Computex in Taipei, Huang said the ban on Nvidia’s H20 chips has not been effective and warned that continued restrictions could cost US firms a USD 50 billion opportunity in China by 2026.
Huang argued that if American companies like Nvidia are blocked from the Chinese market, local customers will turn to domestic alternatives such as Huawei Technologies and start-ups.
He said China accounts for 50% of the world’s AI developers and stressed the importance of them building on American technology, particularly Nvidia’s architecture.
The US has imposed export controls to limit China’s access to advanced semiconductors, citing national security concerns. However, Huang said these measures have backfired.
“All in all, the export controls were a failure. The facts would suggest it,” Huang told reporters. “The US should maximise the speed of AI diffusion. Because if we don’t, the competition will come.”
Huang noted that power and land are cost-effective in China, making it easier for local firms to scale up AI infrastructure despite the ban.
Nvidia has written off USD 5.5 billion worth of H20 chips originally designed to comply with earlier export rules. The company cannot further downgrade the chips to meet the latest restrictions and is discarding the inventory.
The Trump administration is currently rescinding some restrictions on Nvidia chip shipments globally, but a new framework is being drafted.
Huang’s comments align with those of White House AI adviser David Sacks, who advocates for building global AI systems on a US-based tech stack.
Behind the scenes at Computex, Huang also met with SoftBank CEO Masayoshi Son to discuss the USD 500 billion Stargate project, a data centre initiative led by SoftBank and OpenAI that will rely heavily on Nvidia hardware.
Huang warned that if Nvidia is shut out of China, companies like Huawei will fill the gap, undermining US leadership in AI technology.
Nvidia CEO Jensen Huang called US AI chip export restrictions on China a failure
Huang warned the policy could cost US firms a USD 50 billion market by 2026
Nvidia has written off USD 5.5 billion in H20 chips due to extended curbs
Source: SCMP