Nvidia CEO Jensen Huang said that the company’s market share in China’s advanced AI chip sector has fallen sharply from 95% to zero. This decline is due to US trade restrictions targeting China-focused A800 and H800 chips under the updated export rules in 2023.
Previously, China contributed 20-25% of Nvidia’s data center revenue. However, the Chinese government has now instructed domestic companies, including ByteDance and Alibaba, to stop purchasing Nvidia chips and focus on developing local AI technologies.
Huang stated that Nvidia now assumes 0% revenue from China in its financial forecasts. He added that any future business in China would be considered an additional bonus rather than a core part of the company’s revenue.
US Limits AI Chip Exports to China
The US Senate has approved a law restricting exports of advanced AI chips to China. Companies like Nvidia and AMD must now prioritize American customers, including startups and small businesses, before selling to Chinese firms.
The law is part of the annual defense policy and aims to protect US innovation and national security. Supporters say it will keep cutting-edge technology in American hands and maintain the country’s edge in AI and advanced industries.
Reactions are mixed. Senators like Jim Banks and Elizabeth Warren support the measure as a way to ensure fair access for US businesses. But tech companies, including Nvidia and AMD, warn that the rule may stifle competition and innovation without solving a real problem.
