Nvidia CEO Highlights Chinese AI Advancements Amid US Export Restrictions

Nvidia CEO Jensen Huang warns that Chinese AI firms are rapidly filling the gap left by restricted US technology exports. Huawei Technologies Co. has emerged as a formidable competitor, with its latest AI chip now rivaling Nvidia’s H200 in performance. "The Chinese competitors have evolved," Huang stated during an earnings call, noting their capabilities are quadrupling annually.

US export controls on Nvidia’s H20 model have already cost the company $2.5 billion in Q1, with projections of an $8 billion loss this quarter. Major clients like Tencent Holdings Ltd are increasingly turning to domestic alternatives. Huang argues these restrictions aren’t limiting China’s AI progress, but rather accelerating its self-sufficiency.

The tech gap between China and America is narrowing at an unprecedented pace. Huang urged policymakers to reconsider export limitations, suggesting they may ultimately strengthen foreign rivals rather than protect US interests. The comments come as Chinese firms develop competitive alternatives across the semiconductor supply chain.