Nvidia CEO Jensen Huang at an April event in Washington, D.C. Photo: Kevin Dietsch/Getty Images
Nvidia boss Jensen Huang says U.S. export controls on AI chips have totally missed the mark — with their biggest impact being the erosion of Nvidia's competitive position.
The curbs,whichbegan in 2022 and were meant to slow down China's progress on artificial intelligence, have instead fueled a surging Chinese industry, Huang said at a news conference in Taiwan early this morning.
"All in all, the export control was a failure," he said.
📉 The impact: Nvidia's once-dominant position in China has been significantly dented — its market share in the country falling from 95% four years ago to only 50% today, Huang said.
Since Nvidia's top-tier chips are off the table, Chinese data centers have been switching to homegrown GPUs — something Beijing's been encouraging, the New York Times noted.
That's created a big opportunity Nvidia's rival, China-based Huawei.
🇨🇳 Flashback: Huang last month called Huawei "one of the most formidable technology companies in the world," arguing that the hole for Nvidia's chips in China has allowed Huawei to make huge progress in AI chip development over the last several years.
🇺🇸 The latest: White House AI adviser Sriram Krishnan responded today in a Bloomberg interview, saying they hear Nvidia's concerns — but don't plan to loosen the restrictions in China.
