Jensen Huang Criticizes U.S. Export Ban on AI Chips to China
On May 21, NVIDIA CEO Jensen Huang strongly criticized the U.S. government’s export ban on AI chips to China during a press conference at the Computex Taipei International Computer Show. He stated that this policy is fundamentally a failure, predicting that the size of the AI chip market in China is expected to reach $50 billion by 2026. NVIDIA’s market share in China has dropped from 95% four years ago to only 50% now. He further pointed out that if the U.S. government continues to hinder China’s development of AI, it will only embolden China even more. Following this news, Sriram Krishnan, AI technology policy advisor at the White House, responded in an interview with Bloomberg, saying, “We still respect Jensen Huang’s views, but we will not ease restrictions on China.”
Direct Criticism of Export Ban on Chips to China
According to reports, Huang expressed at the Computex press conference that the U.S. chip restrictions on China would have counterproductive effects, allowing Chinese companies like Huawei to rise in prominence. He projected that by 2026:
“The size of the Chinese chip market is expected to reach $50 billion. If NVIDIA continues to face shipment restrictions, Chinese companies will turn to other suppliers for chips.”
NVIDIA Forced to Write Off $5.5 Billion Due to H20 Chip Export Ban
Huang also revealed that NVIDIA, in compliance with previous export regulations, specially designed a downgraded version of the H20 chip for export to China. However, with the new round of U.S. bans coming into effect, this batch of chips is also unable to be exported.
He stated, “We can only write off $5.5 billion; these chips can only be scrapped.”
Meeting with Masayoshi Son on $500 Billion Stargate Project
Huang disclosed that he met with SoftBank CEO Masayoshi Son in Taipei to discuss the Stargate AI data center construction project, which is expected to reach a scale of $500 billion and will utilize a large number of NVIDIA chips, but currently faces funding challenges.
White House Responds to Huang’s Remarks
In light of Huang’s comments, Sriram Krishnan from the White House responded promptly in an interview:
“We respect Jensen Huang’s views, but we will not ease restrictions on China. Both the Democratic and Republican parties agree that the flow of advanced chips into China poses a threat to U.S. national security.”
Potential Easing of Restrictions for Other Allies
While the U.S. will continue to restrict China, Krishnan also mentioned that for friendly nations like the UAE, export restrictions would be gradually eased. However, he emphasized that the U.S. will continue to play a leading role in the global AI technology architecture and will not allow technology to flow out, reaching a consensus with Huang.
Balancing Blockade Policies and Market Share
In summary, Huang’s criticisms highlight the costs and risks of the U.S. chip blockade policy. However, the Trump administration remains unaffected, maintaining export restrictions on chips to China. Both sides still harbor fundamental differences in strategic direction, with one side advocating for openness to preserve market share, while the other insists on a blockade to protect national security.
How U.S. companies and policymakers strike a perfect balance between “technological lead” and “national security” will be a key watershed in determining whether the global technological order can remain stable.
(NVIDIA H20 chip faces U.S. export restrictions to China! Estimated loss of $5.5 billion, with a post-market decline of 6.3%)
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