NVIDIA CEO Jensen Huang gave a big statement over its grip on the China AI chip market, pointing out that Huawei has overtaken the US tech giant with a significantly large share. And a major factor behind this loss is the ongoing US export controls.
Recently, Nvidia shared its quarterly revenue report with a profit increase of 85% to $81.62 billion – up from $44.06 billion last year during the same period. Though the CEO mentioned the company’s AI business loss in a key market – China.
Jensen believes that Nvidia has lost the China AI chip ground to Huawei. The Chinese tech company is a formidable competitor when it comes to artificial intelligence, and despite US sanctions, it managed to survive and touch new heights every year.
He further underlined how the US ban and restrictions on cutting-edge AI chip sales or tech solutions to China made it more powerful and self-sufficient at present.
As of now, Nvidia has told its investors to expect nothing in terms of selling advanced AI semiconductors in China or major Chinese clients, not at least for the moment.
The executive said:
“The demand in China is quite large. Huawei is very, very strong. They had a record year; they’ll likely, very likely have an extraordinary year coming up, and their local ecosystem of chip companies is doing quite well, because we’ve evacuated that market. We’ve really largely conceded that market to them.”
(Image Credits: Nvidia)
It is worth mentioning that there was a time when Nvidia used to rule the Chinese AI data center and recorded at least one-fifth of its revenue. But the Trump administration’s new “license rules” phased out Nvidia from China.
- Nvidia H20 curbs in China can boost Huawei AI chip business
- US restrictions on AI chips can level up Huawei’s role in China: Nvidia
Adding more, Jensen stated that he is still eager to return to the market. At the same time, it is making efforts to expand its supply chain. The CEO said that the AI industry is a five-layer cake that works on spanning energy, chips, infrastructure, models, and applications. For China, he stated:
“We would be more than delighted to serve the market. We have a lot of customers there, we have a lot of partners there, and we’ve been there for 30 years.”
The post CEO says Nvidia lost the China AI chip ground to Huawei appeared first on Huawei Central.
