- Nvidia lost around $ 5.5 billion in costs and $ 15 billion in revenues due to export prohibitions H20
- CEO Jensen Huang celebrates Trump’s decision to reverse some restrictions
- The AI market in China could reach $ 50 billion this year
The CEO of Nvidia, Jensen Huang, criticized the export controls of the US chips to China, calling them a “failure” that finally ended up costing billions to US companies.
Speaking in this year’s computer event, the leader praised Trump’s measure to modify the export curbs of the Biden era (through PakGazette), stating that “President Trump realizes that it is exactly the wrong objective.”
In April, the most valuable chips manufacturer in the world declared that it would accumulate approximately $ 5.5 billion in costs related only to the export of H20 chips to China and other restricted nations.
Nvidia praises the reversal of chips export ban
Huang said that the original export cases were defective, and did not stop the investigation of AI in China, which continues with a strong local investment. However, although the country continues practically not affected, the Nvidia market share in China fell from 95% to 50% in the period after Biden’s export restrictions.
The intense competition of national companies, such as Huawei, has already filled the gaps left by US suppliers.
The CEO explained that China’s market could reach the amazing amount of $ 50 billion this year, marking a great opportunity for Nvidia if access to the nation is restored through high restrictions. In addition to the $ 5.5 billion in estimated costs, Nvidia waited $ 15 billion in lost income due to export restrictions in its H20 chips.
Nvidia is also developing a compatible version of its Blackwell AI chip with degraded memory to meet the restrictions of the United States.
Despite reverting some prohibitions of the Biden era, the Trump administration is considering replacing the stepped export system with a global license regime for a better leverage in commercial conversations. Earlier this week, China responded to US actions demanding the end of “discriminatory” policies.
“The AI is progressing at the speed of light when the AFFEE and physical the AI prepared the scenario for the next wave of Ia to revolutionize the largest industries,” Huang said in the company’s most recent profit report, when he revealed an increase of 78% year after year in quarterly income.
