- Nvidia lost about $ 5.5 billion in costs and $ 15 billion in revenue due to H20 export ban
- CEO Jensen Huang celebrates Trump’s decision to turn some restrictions
- AI market in China could reach $ 50 billion this year
Nvidia -Managing Director Jensen Huang has criticized the US AI chipexation control to China and called them a “failure” that eventually ended up costing US companies billions.
When he spoke at this year’s Computex event, the leader praised Trump’s steps to change the export edge stone in the Biden era (via Pakinomist), stating that “President Trump realizes it’s exactly the wrong goal.”
In April, the world’s most valuable chipmaker declared that it would accrue to an estimated $ 5.5 billion in costs relating exclusively to the export of H20 chips to China and other limited nations.
Nvidia praises chip export bans
Huang said the original export assumptions were deficient and did not stop AI research in China, which continues with heavy local investments. While the country continues almost unaffected, Nvidia’s market share in China fell from 95% to 50% in the period after the bite’s export restrictions were introduced.
Intense competition from domestic companies, such as Huawei, has already filled in the gaps left by US suppliers.
The CEO explained that China’s AI market could reach a staggering $ 50 billion this year, marking a great opportunity for Nvidia if access to the nation is restored via raised restrictions. Apart from the $ 5.5 billion in estimated costs, NVIDIA expected $ 15 billion in lost revenue due to export restrictions on its H20 chips.
Nvidia also develops a compatible version of its Blackwell AI chip with downgraded memory to meet US restrictions.
Despite turning some Biden-Era Prohibitions, the Trump Administration is considering replacing the layered export system with a global license regime for better leverage in trade negotiations. Earlier this week, China responded to US actions by demanding a termination of “discriminatory” policies.
“AI goes on with light speed as Agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries,” Huang said in the company’s latest earning report when it revealed an increase of 78% over the year in quarterly revenue.
