Nvidia CEO Criticizes U.S. Policy Halting AI Chip Exports to China

In a rare foray into political discourse, NVIDIA CEO Jensen Huang critiqued U.S. export policies that have blocked the sale of its advanced semiconductors to China.

This move followed a significant $4.5 billion charge against NVIDIA’s first-quarter earnings, stemming from the abrupt halt of H20 AI chip shipments to China in April. The restrictions were enacted by the Trump administration as part of broader trade tensions and tariff disputes with China and other nations.

“Let me address the frequent questions on export controls,” Huang stated. “China represents one of the world’s largest AI markets and serves as a critical launchpad for global innovation, home to roughly half of the world’s AI researchers. The platform that succeeds in China is positioned for global leadership. However, the $50 billion Chinese market is now largely inaccessible to U.S. firms. The H20 export ban has effectively terminated our Hopper data center business in China. To comply, we have ceased further Hopper production. Consequently, we are writing off billions in inventory that cannot be sold or repurposed. We are investigating limited avenues for competition, but Hopper is no longer viable there.”

Huang emphasized that China will continue advancing its AI capabilities regardless of access to U.S. chips, needing computational power to train and deploy sophisticated models.

“The issue isn’t whether China will possess this technology—it already does,” he noted. “The real question is whether one of the planet’s largest AI markets will operate on American technology platforms. Shielding Chinese chipmakers from U.S. competition only fortifies their international standing and undermines America’s strategic position.”

He added, “Export restrictions have inadvertently accelerated China’s competitive drive. This race extends beyond semiconductors; it’s about which technological stack powers the world as it expands. Global infrastructure leadership is on the line. U.S. policy has been predicated on the belief that China cannot manufacture advanced chips. That assumption was always debatable and is now demonstrably incorrect. China possesses immense manufacturing capacity. Ultimately, the platform that wins over AI developers will dominate the AI landscape. Export controls should be designed to strengthen U.S. platforms, not to drive half the world’s AI talent to other regions.”

While critical of certain policies, Huang welcomed one recent change: “It is very encouraging to see the AI Diffusion Rule rescinded. President Trump is focused on American success and recognizes we are not alone in this technological race. He understands the necessity of propagating the American technology stack worldwide.”

Huang referred to the Biden-era AI Diffusion Rule, revoked in May 2025 before its implementation. The Biden administration had sought to impose export controls on AI model weights and advanced computing integrated circuits, which could have limited the global spread of AI technology.

The Trump administration contended that such a rule would hinder American AI innovation.

The rule's revocation may benefit nations like Saudi Arabia and U.S. AI firms by relaxing AI export barriers. However, the Trump administration signaled its intent to promote American AI technology collaboratively with trusted allies while continuing to deny access to geopolitical rivals.

“The President has a clear plan and vision, and I have confidence in his approach,” Huang concluded. “Nevertheless, these new restrictions mark the definitive end for our Hopper platform in that market.”