Nvidia's Jensen Huang criticises US AI chip export rules

Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI

By AFP

Published: May 21, 2025 12:56:15 PM IST

Jensen Huang, co-founder and CEO of Nvidia Corp., speaks during a news conference in Taipei on May 21, 2025. Huang said that US export controls on artificial intelligence chips to China had failed, with companies using locally developed technology. Image: I-Hwa Cheng / AFP

Nvidia chief executive Jensen Huang said Wednesday that US export controls on artificial intelligence chips to China had failed, with companies using locally developed cutting-edge technology.

Huang said Nvidia's share of China's AI chip market had fallen to 50 percent from nearly 95 percent at the beginning of former president Joe Biden's administration.

"The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development," Huang told reporters at Taiwan's top tech show, Computex.

"I think, all in all, the export control was a failure," Huang said, noting companies would use the "second best" option if they couldn't get Nvidia's chips.

US President Donald Trump's administration last week rescinded some controls, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.

Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology.

Nvidia and other chipmakers had lobbied against the curbs.

Huang said Nvidia had written off "multiple billions of dollars" due to the export controls.

He said China's AI market would be worth $50 billion in 2026, adding "it would be a shame not to be able to enjoy that opportunity, bring home tax revenues to United States, create jobs, sustain the industry."

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"China has a vibrant technology ecosystem, and it's very important to realise that China has 50 percent of the world's AI researchers, and China is incredibly good at software," Huang said.

Huang also praised China-based DeepSeek, saying it had been positive for AI infrastructure and "increased the amount of computing need by maybe 100 to 1000 times".

"That's the reason why all over the world, the AI companies are saying their GPUs are melting down," Huang said.

DeepSeek shook up the world of generative artificial intelligence with the debut of a low-cost, high-performance model that challenges the hegemony of OpenAI and other big-spending behemoths.

Several countries have questioned DeepSeek's handling of data and believe that the secretive company may be subject to the control of the Chinese government.