NVIDIA CEO Asserts H20 AI GPU Ban Won’t Hinder China’s AI Advancement, Citing DeepSeek & Huawei as Examples of Chinese AI Excellence

In a recent critique, NVIDIA’s CEO, Jensen Huang, has openly challenged the United States’ artificial intelligence (AI) policies, specifically their approach to limiting China’s technological advancements. He labeled the “AI diffusion”rule as ineffective and counterproductive.

The Implications of the AI Diffusion Rule

Jensen Huang emphasized that the United States has historically played a pivotal role in China’s technological innovation and development. With a substantial 30-year relationship between NVIDIA and China, Huang has consistently opposed the initial round of US export controls. During an interview at Computex with Stratechery, he argued that restrictions on AI technologies could hinder US competitiveness globally, stating that it is imperative for American technology to be rapidly adopted internationally to maintain leadership.

The idea of AI diffusion limiting other countries’ access to American technology is a mission expressed exactly wrong. It should be about accelerating the adoption of American technology everywhere before it’s too late. If the goal is for America to lead, then AI diffusion did exactly the opposite of that.

– Jensen Huang, CEO of NVIDIA

The Talent Landscape in AI

Huang pointed out that over half of the world’s AI researchers hail from China, and many prominent firms, including OpenAI and Anthropic, employ Chinese talent in critical projects. He mentioned that, notwithstanding stringent US regulations, China continues to achieve significant milestones, exemplified by advancements like the DeepSeek and Ascend AI chips. These accomplishments position China as a formidable player in the global AI landscape.

DeepSeek transferred user data without permission, claims South Korean data protection authority

The Cost of Isolation

Huang warned that building a separate AI ecosystem in China could threaten the US’s technological superiority, positioning NVIDIA as merely a secondary choice for Chinese clients. He argued that American technology entering Chinese markets could not only enhance dependency but also aid in alleviating the trade deficit while stimulating job creation in the US.

Discussing the recent ban on H20 AI GPUs, Huang indicated a potential loss of up to $15 billion in sales for NVIDIA, translating to a $3 billion tax loss for the US. He compared the value of China’s AI business—estimated at $50 billion—to that of major corporations like Boeing, highlighting that it’s not just about losing a product but an entire ecosystem.

Exactly. Anyone who thought that one chess move to somehow ban China from H20s would somehow cut off their ability to do AI is deeply uninformed.

A Contested Future

The negative stance adopted by the US government towards Chinese AI advancements, particularly during the Biden administration and continuing into the current regime, raises concerns. Despite these efforts, China has seemingly maintained its momentum in AI development, showing no signs of slowing down in its ambitions.

Source & Images