Jensen Huang, the CEO of NVIDIA, has made a striking assertion concerning the company’s dwindling market share in China, indicating a significant decline during the tenure of the Biden administration.
NVIDIA’s CEO Optimistic About Reentering China’s AI Market Amidst Stalled Progress
The landscape for NVIDIA’s presence in China’s AI market has been unstable for a while, primarily due to the various restrictions imposed during both the Biden administration and its predecessor. Notably, when NVIDIA launched its Ampere and Hopper lineups, the company faced minimal barriers. Their A100 and H100 AI chips were supplied to China without export limitations. However, as AI technology surged into the mainstream under President Biden’s leadership, tighter restrictions were implemented that significantly impacted NVIDIA’s operations in the region. In a recent media interaction, Huang expressed his concerns about these restrictive policies:
Today, we have 0%.At the beginning of the Biden administration, we had 95%.The policies of that administration really caused us to lose practically the entire China market.
I would guess that China is probably something like $35 to $50 billion a year to us if we are fully in that market today. By the end of the decade, it’s probably well over $100 billion. It’s quite substantial, but at the moment, it’s zero.
Huang’s remarks directly reference Biden-era policies, likely highlighting legislative measures such as the AI Diffusion Act, which was designed to modify the distribution of American technology based on geopolitical relations. NVIDIA had previously expressed its disapproval of this act through a dedicated blog post. Under the previous administration, the company had adapted its strategy by launching the H20 AI chip tailored for compliance with emerging export regulations, in addition to developing the RTX 5090D for the consumer market in China.
However, the decline in NVIDIA’s Chinese market share cannot solely be attributed to the current administration. Under President Trump, the company faced a halt on the sales of its H20 AI chip until a “revenue sharing”agreement was reached with the government. Additionally, evolving US-China trade relations negatively affected NVIDIA, as Chinese regulatory bodies encouraged domestic tech giants to refrain from sourcing NVIDIA’s AI solutions. The accuracy of Huang’s statements regarding market share can be debated further, but for now, the focus remains on NVIDIA’s complete exclusion from the Chinese market.
Looking ahead, the future remains uncertain for NVIDIA in China, as Huang is eager to introduce their Blackwell solution into the region. Time is of the essence for the company as it seeks to regain its foothold in this crucial market.
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