NVIDIA CEO Jensen Huang: "America's export control has failed and only cultivated China's technology!"

On June 10, South Korean media JoongAng Ilbo published an article stating that NVIDIA CEO Jensen Huang strongly criticized America's export control on China, calling it a "failed policy." Previously, he had expressed dissatisfaction in a mild manner, such as "the technological gap with China is not big" or "if we leave the market, another company (Huawei) will replace us," but this time, his tone became more intense. This indicates that NVIDIA, feeling the crisis due to China's rapid pursuit, can no longer afford to be complacent.

Recently, when Huang was interviewed by the media and asked about his evaluation of America's semiconductor export restrictions and their impact, he bluntly stated, "Overall, the export control has failed." He also pointed out that "export control has actually accelerated the development of competitive AI hardware by Chinese tech companies like Huawei."

Huang believes that China's own technical capabilities are developing rapidly. He said, "Four years ago, at the beginning of the Biden administration, NVIDIA's market share in China was 95%, but now it is only 50%. Since we can only sell low-spec products, our average selling price has dropped, and we have lost a lot of revenue." During the Biden administration, NVIDIA had specifically sold low-end chips (H20) to China to circumvent export controls, but even this was restricted after the Trump administration took office. Recently, NVIDIA disclosed in public filings that due to the strengthened AI chip export restrictions, the company lost about $5.5 billion in just the first quarter of this year.

The possibility of developing products with specifications lower than H20 has been denied. Huang said, "The current H20 or 'Hopper' architecture performance cannot be reduced further, otherwise it will become useless in the market."

The strategic importance of the Chinese market has also been repeatedly emphasized. Huang said, "The idea that only America can provide AI technology is no longer convincing. We should not hinder exports but maintain competitive advantage through the dissemination of technology." He predicted that China's AI market size will reach $50 billion next year and missing this opportunity would be a strategic error. Last year, NVIDIA's revenue from the Chinese market was $17 billion, accounting for 14% of its total sales.

Original Source: https://www.toutiao.com/article/1834530737550348/

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