Nvidia CEO Jensen Huang warns “big losses” if US companies lose access to China’s $50 billion AI market
Washington’s Chip control It has denied US companies like Nvidia’s access to China’s huge, growing AI chip market, CEO Jensen Huang said Tuesday, weeks after chipmakers confirmed it. take A $5.5 billion hit from blocked sales to the world’s second largest economy.
“China is a very big market. It will probably be a $50 billion market over the next few or three years. It will be a huge loss to not deal with it as an American company,” Huang said. Interview and CNBC. He added that access to China’s AI market creates jobs in the US.
Huang has long been actively talking about China and its AI sector, calling it a “significant market” for Nvidia in mid-April, and is currently on a surprise visit to the country. He also warns that shutting down the country could hurt both the US and Nvidia’s interests by encouraging “strategic competitors” like Huawei.
Nvidia recently revealed that it would cost $5.5 billion after the US decided to ban Chipmaker from selling H20 chips to China without a license. (Nvidia designed the H20 chip to comply with previous US export controls).
On Tuesday, AMD revealed that it would take too A $1.5 billion hit in revenue From updated US controls. Like NVIDIA, AMD also creates a key graphics processing unit (GPU) for powering AI applications.
Washington first imposed broad export controls on China in October 2022, and steadily closed loopholes in the sanctions regime in the years that followed. The rules go beyond Nvidia and AMD It affects A manufacturer that produces the tools used to create chips.
US companies like Nvidia may want to maintain access to China’s huge markets, but they may also be worried about growing competition with local players like Huawei. Huang has previously warned that China is not far behind the US in the AI competition.
a Report From the Center for Strategic and International Studies, a Washington, DC-based think tank released in March, China said it was unrealistic to “narrow” the AI gap with the US and hope for a lead of more than two years.
China has spent years investment Billions of dollars to the local semiconductor industry in an attempt to break away from foreign-made chips and chip-making equipment. Beijing also encourages businesses to use domestically made chips whenever possible.
On the weekend, Financial Times It has been reported Huawei is building an advanced chip production line, part of a broader effort to move the entire AI chip chain to China. So does Huawei It is reportedly We are preparing to test the latest Ascend Series chips, a competitor to Nvidia’s products.
This story was originally introduced Fortune.com