Nvidia CEO Criticizes U.S. AI Chip Restrictions
(MENAFN) Jensen Huang, the head of Nvidia, criticized U.S. limitations on artificial intelligence chip exports to China, calling the policy “a failure,” as per a report by the media.
Huang pointed out that these measures have backfired by motivating Chinese companies to advance their own technologies.
At a technology gathering in Taiwan, Huang remarked, “Four years ago, Nvidia had 95% market share in China.
Today, it is only 50 per cent,” highlighting how domestic competitors have filled the gap. He emphasized that China has developed significant local alternatives, stating, “They have a lot of local technology they would use if they didn’t have Nvidia.”
Huang further explained that Chinese AI researchers are increasingly reliant on domestic semiconductors. “Chinese AI (artificial intelligence) researchers will use their own chips.
They will use the second best," he said. He added that local firms have shown strong determination, driven by export bans and bolstered by governmental backing.
According to Huang, “export controls gave them the spirit, and government support accelerated their development,” resulting in fierce market competition within China.
He also criticized the AI export rule established under former U.S. President Joe Biden, which was supposed to be enforced on May 15 and would implement a three-level licensing framework for chips used in data centers.
“The fundamental assumptions that led to the AI diffusion rule in the beginning have proven to be fundamentally flawed,” Huang argued.
He suggested that for the U.S. to maintain its lead, it should expand and speed up innovation dissemination rather than restrict it: “If the US wants to stay ahead, we need to maximize and accelerate our diffusion, not limit it.”
Huang expressed approval of Leader Donald Trump’s decision to reverse certain chip-related restrictions.
These comments came shortly after the U.S. and United Arab Emirates revealed plans to develop the largest artificial intelligence campus outside America, which will be powered by Nvidia processors.
The U.S. has been placing limitations on high-performance AI chip exports to China in an effort to hinder the country’s technological progress.
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