Nvidia CEO Takes Aim at US Export Controls

By Netvora Tech News

---

Nvidia CEO Jensen Huang has waded into the political fray, criticizing a U.S. policy that has effectively cut off the company's sales of its H20 AI chips to China. The move, imposed by President Donald Trump as part of the ongoing trade war over tariffs, has forced Nvidia to take a $4.5 billion charge against its Q1 earnings.

The Impact on Nvidia's Business

Nvidia's decision to cease sales of its H20 AI chips to China was a major blow to the company's business. The H20 export ban has ended Nvidia's Hopper data center business in China, leaving the company unable to produce Hopper further to comply with the ban. As a result, Nvidia is taking a multibillion-dollar write-off on inventory that cannot be sold or repurposed.

A Critique of US Export Controls

Huang expressed his frustration with the US export controls, saying that they have effectively closed the $50 billion Chinese market to U.S. industry. He argued that the restrictions are not only harming Nvidia's business but also weakening America's position in the global AI market.

"China is one of the world's largest AI markets and a springboard to global success," Huang said. "The platform that wins China is positioned to lead globally today. However, the $50 billion China market is effectively closed to U.S. industry."

The Future of AI in China

Huang suggested that China will continue to develop its AI capabilities, with or without U.S. chips. "The question is not whether China will have it. It already does," he said. "The question is whether one of the world's largest AI markets will run on American platforms. Shielding Chinese chip makers from U.S. competition only strengthens them abroad and weakens America's position."

Nvidia is exploring limited ways to compete in the Chinese market, but Huang made it clear that the Hopper is no longer an option for the company. The situation highlights the challenges faced by U.S. tech companies in the face of escalating trade tensions with China.

• The US export controls have effectively cut off Nvidia's sales of H20 AI chips to China.
• Nvidia is taking a $4.5 billion charge against its Q1 earnings due to the ban.
• The company has ended its Hopper data center business in China as a result of the ban.
• Nvidia is exploring limited ways to compete in the Chinese market.