Nvidia CEO criticizes US chip restrictions, warns of losing ground to China

At the Computex 2025 technology conference in Taipei, Nvidia CEO Jensen Huang labeled US export restrictions on advanced AI chips to China as a "failure," asserting that these policies are harming American businesses more than their intended targets. Huang highlighted that the controls have significantly reduced Nvidia's market share in China from 95% to 50%, and have inadvertently accelerated China's efforts to develop its own semiconductor technologies.

"The US cannot monopolize AI development," Huang stated, emphasizing that China's AI market is projected to reach $50 billion within the next few years. He warned that continued restrictions could result in the US forfeiting its competitive edge in the global AI race.

Caught in the crossfire

As the world’s leading designer of AI chips, Nvidia finds itself in the middle of the escalating technology cold war. The company’s high-performance GPUs, which are indispensable for training and deploying generative AI, are now a geopolitical flashpoint.

The US government has implemented multiple waves of export controls targeting advanced semiconductors. These were initially focused on Huawei and other specific firms, but later expanded to block shipments of cutting-edge AI chips to China entirely.

While the policy aims to curb China’s access to the tools necessary for developing military and surveillance applications of AI, Huang argues the effect has been to spur China’s own domestic innovation.

“They’re incredible in computing and network technology,” he said, singling out Huawei’s progress in chip design. “They have made enormous strides in the last several years.”

In response to the export controls, Nvidia has been developing modified versions of its chips to comply with U.S. regulations. The company plans to launch a more affordable AI chip for the Chinese market, based on the Blackwell architecture, as early as June 2025. This new GPU, expected to be called the 6000D or B40, will have reduced capabilities and a simpler manufacturing process to meet export rules.

Despite these efforts, Nvidia reported a $5.5 billion inventory write-off and anticipates a potential $15 billion loss in sales due to the tightened U.S. controls.

Going forward

While navigating these challenges, Huang continues to engage with both US and Chinese officials, advocating for policies that balance national security with technological advancement. He maintains that retaining access to the Chinese market is crucial for sustaining U.S. innovation and economic growth in the AI sector.