Nvidia CEO Jensen Huang on US 'chip ban' policy: 'The assumption was always questionable, and now it’s...

Nvidia CEO Jensen Huang has once again criticised US chip export restrictions, stating that China, a $50 billion market, has effectively been closed to the company due to the policy. Huang argued that the export controls were counterproductive, pushing Chinese AI developers towards homegrown chips instead of relying on American technology platforms for AI software. "The US has based its policy on the assumption that China cannot make AI chips. That assumption was always questionable, and now it’s clearly wrong," he said in prepared remarks as the chipmaker reported strong fiscal first-quarter earnings on Wednesday (May 28).He warned that the restrictions were driving AI talent toward Chinese competitors such as Huawei, limiting the influence of US technology stacks in the global AI ecosystem. "We want every developer in the world to prefer the American technology stacks," Huang told CNBC.Despite losing access to the Chinese market, Nvidia is exploring potential products that could still be sold in the region. However, the company currently does not have a replacement chip ready.The impact of the restrictions is significant as Nvidia revealed it expects to record $45 billion in chip sales during the July quarter, missing out on $8 billion due to US restrictions on its H20 chip. In the April quarter, Nvidia estimated it lost $2.5 billion in sales due to the same policy.Nvidia announced a 69% increase in sales, however, despite this strong performance, the chip manufacturer issued a warning about emerging risks to its business stemming from the ongoing technology conflict between the US and China.During a conference call with analysts, Huang commended US President Donald Trump's decision to rescind an export rule previously enacted by former President Joe Biden. However, the company's quarterly regulatory filing highlighted a significant point of concern: no new rule has been issued to replace the rescinded one. The filing explicitly stated that a "replacement rule may impose new restrictions on our products or operations."