Nvidia says US export controls on AI chips to China were ‘a failure’

The world’s second-largest economy to invest aggressively to develop a supply chain that does not rely on manufacturers outside the country

Published Wed, May 21, 2025 · 12:02 PM

US export controls on artificial intelligence (AI) chips to China were “a failure”, Nvidia chief executive Jensen Huang said on Wednesday (May 21).

“All in all, the export control was a failure,” Huang said adding: “The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed.”

The US block on sales of advanced AI chips to China has forced companies there to buy semiconductors from Chinese designers such as Huawei, while also spurring China to invest aggressively to develop a supply chain that does not rely on manufacturers outside the country.

Huang’s comments came after China on Monday urged the United States to “immediately correct its wrongdoings” and stop “discriminatory” measures following the US guidance warning companies not to use advanced computer chips from China, including Huawei’s Ascend AI chips.

The US action seriously undermined consensus reached at the high-level bilateral trade talks in Geneva, a statement from China’s commerce ministry said, vowing resolute measures if the US continues to “substantially” harm China’s interests.

Huang, speaking at the annual Computex event in Taipei, said Nvidia’s market share in China dropped to 50 per cent from 95 per cent at the start of former US President Joe Biden’s administration. REUTERS

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