Nvidia says U.S. export controls on AI chips to China were ‘a failure’

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Nvidia says U.S. export controls on AI chips to China were ‘a failure’

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the Computex conference in Taipei, Taiwan, on Tuesday, May 20, 2025.

Annabelle Chih | Bloomberg | Getty Images

U.S. export controls on artificial intelligence chips to China were “a failure”, Nvidia Chief Executive Jensen Huang said on Wednesday.

“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 U.S. block on sales of advanced AI chips to China has forced companies there to buy semiconductors from ******** designers such as Huawei, while also spurring China to invest aggressively to develop a supply chain that doesn’t 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 U.S. guidance warning companies not to use advanced computer chips from China, including Huawei’s Ascend AI chips.

The U.S. 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 U.S. 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% from 95% at the start of former U.S. President Joe Biden’s administration.

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