"TAIPEI -- Nvidia Chief Executive Jensen Huang said U.S. export controls limiting the sale of advanced chips to China were a failure, contending they have galvanized Beijing to push ahead faster with its own artificial-intelligence technologies.
Nvidia has over the past four years lost market share to Chinese competitors because of the restrictions, Huang said.
"The local companies are very talented and very determined, and the export controls give them the spirit, energy and the government support to accelerate their development," Huang said Wednesday in Taipei, where he is attending an industry conference.
The Biden administration introduced measures crimping the ability of U.S. companies to sell cutting-edge chips, chip-related equipment and technologies to China over national-security concerns. The curbs have particularly affected Nvidia, the leader in chips for AI applications.
Many remain in place under President Trump, and the Trump administration added a control in April on the export of a Nvidia AI chip that the company had tailored for sale in China. Nvidia said it would take a $5.5 billion charge over the issue.
Huang said China was the second-largest computer market globally and would be a $50 billion AI market next year.
Revenue from China, he said, could translate to tax dollars and jobs for the U.S.
"I think all along the export control was a failure," Huang said.
At the same time, he praised Trump for reversing one export-control plan that Nvidia had criticized.
In the final days of the Biden administration, officials released a draft of an AI diffusion rule that would have put country caps on the sale of AI chips around the globe, not just to China.
The rule was aimed at making it harder for China to access U.S. technology through third countries.
The Trump administration rescinded the rule this month before it took effect.
"The goal of the AI diffusion rule as specified in the past was to limit AI diffusion. President Trump realizes that it's exactly the wrong goals," Huang said.
"America is not the only provider of AI technology," he said. "If the United States wants to stay in the lead and the U.S. would like the rest of the world to build on American technology, then we would have to maximize AI diffusion, maximize the speed."
The removal of the diffusion rule has benefited Nvidia and countries in places such as the Middle East and Southeast Asia that otherwise would have been curtailed in their ability to build large AI facilities.
Days after the rule was pulled, American chip makers including Nvidia unveiled deals to sell hundreds of thousands of the most powerful chips in the United Arab Emirates, Saudi Arabia and Qatar during a visit by Trump and Huang to the region.” [1]
1. U.S. News: Nvidia CEO Calls Export Curbs On AI Chips to China a Failure. Lin, Liza. Wall Street Journal, Eastern edition; New York, N.Y.. 22 May 2025: A3.
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