Attempts made by the US government to restrict China’s advancements in AI technology through limiting GPU exports have been deemed a failure by Jensen Huang, the CEO of Nvidia. At the Computex exhibition in Taipei, Taiwan, Huang stated, “AI researchers are still doing AI research in China. If they don’t have enough Nvidia, they will use their own.” This underscores the ineffective nature of export controls aimed at stifling competition.

Huang noted that restrictions on Nvidia’s H20 GPU could lead to a staggering loss of approximately $15 billion in potential sales. The ongoing tensions and regulations only encourage local companies, like Huawei, to enhance their GPU capabilities in an effort to close the performance gap with Nvidia.

In his speech, Huang also touched upon the danger that any advantage gained by manufacturers like Huawei could proliferate to other markets, thereby strengthening their global position. As Nvidia plans to expand its manufacturing footprint within the US, the nuances of Huang’s strategy and alliances remain complex, especially considering his recent engagements with both US and Chinese officials.