Nvidia CEO Calls for U.S. Action: Ease $50B Roadblocks in the Race Against China

Nvidia Corporation’s CEO, Jensen Huang, urged the U.S. government to relax limitations on exporting artificial intelligence technologies to China. He warned that failing to do so could result in significant financial losses, potentially ceding ground to emerging competitors like Huawei Technologies Co.

Huang reiterated concerns raised within certain circles in Washington regarding the necessity of advancing U.S. artificial intelligence technologies by easing export restrictions aimed at preventing the emergence of a strategic competitor. He informed journalists at Computex in Taipei that China represents a $50 billion market opportunity in 2026. According to him, should American companies such as NVIDIA be barred entry, these domestic consumers would simply redirect their spending towards other international suppliers.

Reduced regulations offer direct advantages to NVIDIA, the key player in a worldwide surge in artificial intelligence infrastructure. Huang’s perspectives echo those of figures like White House AI advisor David Sacks, who advocates for ensuring that global AI developments rely on an "American tech stack" – encompassing all necessary hardware and services rooted in U.S. technology. This stance resonates with the priorities set during the Trump administration. rescinding limitations on Nvidia chip deliveries to most of the globe, although authorities are formulating an alternative system.

U.S. authorities have likewise restated their stance against utilizing Huawei's semiconductors, as this Chinese tech giant leads in technological advancements, sparking outrage from Beijing.

Huang stated that "The U.S. needs to accelerate the spread of AI as much as possible. If not, others will step into the gap," he warned. "Given that China houses half of all global AI developers, it's crucial that their work is based on architectures like those from Nvidia, or at minimum utilizes American tech."

The notion that the U.S. is the sole country developing and supplying AI infrastructure is entirely incorrect, the 62-year-old executive noted.

At the week-long technology exhibition in Taiwan, Huang mentioned that he had multiple meetings with Masayoshi Son, CEO of SoftBank Group Corp., to talk about the $500 billion Stargate initiative. This extensive data center expansion, spearheaded by SoftBank along with collaborators such as OpenAI, will significantly rely on equipment from Nvidia, despite encountering some issues. snags with securing funding .

NVIDIA is also feeling the impact of restrictions on selling its most advanced chips to China, which is the biggest market for semiconductors globally.

Learn more about restrictions on AI in China

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It’s written off $5.5 billion worth of H2O AI chips for the Chinese market — products initially developed to adhere to export restrictions on more advanced components — following the extension of these limitations by the Trump administration to encompass those semiconductor types.

In Taipei on Wednesday, Huang said Nvidia cannot further downgrade those chips to make them compliant, so it’s discarding the inventory. Huang reiterated the warning that if Nvidia can’t sell in China, Huawei and others will fill the gap.

“Power is quite cost-effective in China. And there’s plenty of land. And so the ban on H20 is not effective for that reason,” Huang said.

They will simply purchase additional chips from startups, Huawei, and other companies. Therefore, I genuinely hope that the U.S. government realizes the ineffectiveness of the ban and provides us with an opportunity to regain our footing and reclaim the market.

Why Is Nvidia Dominating AI Chipsets, and Will It Continue?

--Assisted by Mackenzie Hawkins.

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