Nvidia's CEO, Jensen Huang, has addressed the complexities arising from US trade policies and the escalating AI competition with China. Huang acknowledged that restrictions on AI chip exports to China have backfired, spurring innovation within China and weakening the position of US tech companies. He pointed out that China already possesses significant AI capabilities, and the key question is whether this market will be based on American platforms.
Huang criticised export curbs that prevent Nvidia from selling its H20 chip in China, a product he viewed as a 'springboard to global success'. These restrictions have cost Nvidia billions in sales and led to a substantial inventory charge. Despite these challenges, Huang remains engaged with policymakers to find compliant paths forward, emphasising that export control decisions should strengthen US technology platforms. He also highlighted the importance of US platforms remaining the preferred choice for open-source AI, even if it means collaborating with developers in China.
Nvidia reported strong Q1 revenue growth, driven by data centre revenue, but also noted that US export controls have effectively closed off a substantial portion of the Chinese market. Huang stressed that nations are investing heavily in AI infrastructure, and Nvidia is prepared to meet the growing demand across various AI applications.
