Nvidia CEO Jensen Huang asked the Trump administration to review microchip export restrictions for China because the company faces losing a $50 billion market without affecting Chinese military capabilities. During his appearance at the Milken Institute annual meeting on Tuesday Huang expressed his opposition to the US ban on exporting H20 microchips to China which followed previous restrictions under the Biden administration. The restrictions fail to achieve their purpose because China along with other adversaries can transform their current computing infrastructure into military assets. According to Huang the Chinese will protect their current computing infrastructure that exists worldwide. He pointed out Huawei as a strong competitor which would replace Nvidia in the market. According to Huang the United States would gain global leadership in AI technology standards by permitting Nvidia to operate in China which would expand American influence. The Chinese AI chip market will grow to $50 billion during the next few years according to Huang who compared it to Boeing’s entire company value. According to Huang the restrictions eliminate a major business opportunity for Nvidia while failing to meet their strategic objectives.
Nvidia’s Jensen Huang Warns of $50 Billion China Market Loss Due to Chip Restrictions
