Nvidia CEO Slams U.S. AI Chip Restrictions, Calls Them "Failure
(MENAFN) Jensen Huang, CEO of Nvidia, has harshly criticized the U.S. government's restrictions on artificial intelligence chips to China, calling them a "failure" that has only pushed Chinese companies to develop their own technology. Huang shared these views at a tech conference in Taiwan, according to a media report.
“Four years ago, Nvidia had 95% market share in China. Today, it is only 50 per cent,” Huang remarked. “The rest is Chinese technology. They have a lot of local technology they would use if they didn’t have Nvidia."
Huang added that “Chinese AI (artificial intelligence) researchers will use their own chips. They will use the second best. Local companies are very determined, and export controls gave them the spirit, and government support accelerated their development. Our competition is intense in China."
He also criticized the new AI diffusion regulation from former President Joe Biden, which was set to begin on May 15. The rule aimed to establish a three-tier licensing structure for AI chips used in data centers. Huang described the rule’s underlying assumptions as “fundamentally flawed.”
“The fundamental assumptions that led to the AI diffusion rule in the beginning have proven to be fundamentally flawed,” he stated. “If the US wants to stay ahead, we need to maximize and accelerate our diffusion, not limit it.”
In addition, Huang praised U.S. President Donald Trump for reversing the policy on chip restrictions. His comments came shortly after the announcement of a new AI campus development in collaboration with the United Arab Emirates, which will utilize Nvidia’s chips.
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