Jensen Huang, the CEO of Nvidia, presented a blunt argument for the Trump administration to reconsider its restrictions on China microchips, claiming that the limits won’t deter China’s military anyhow and that his business will be leaving a $50 billion market.
Huang spoke late Tuesday at the annual meeting of the Milken Institute, one month after Nvidia revealed that the United States was now preventing the export of important H20 microchips to the second-largest economy in the world. Prior to this, the Biden administration had restricted Nvidia’s exports of sophisticated chips to China.
“The fallacy of that is no government, especially the government of our adversaries, are limited by the available capacity of computing in their country for their military reasons,” the CEO in a leather jacket stated.
“If they need it for military advances, they’ll just secure whatever computing resources that they already have,” he stated. He stated that millions of Nvidia processors are present in almost every nation.
Huang added that Huawei, a Chinese company, is “formidable” and will fill Nvidia’s void.
On the other hand, Huang stated that if Nvidia was permitted to export to China, its chips would contribute to the globalization of the American standard and that AI would be based on American technology.
In a few years, he predicts the Chinese market for AI chips would reach $50 billion. “Fifty billion dollars is like Boeing – not a plane – the entire company,” Huang stated.
Although shares of the microprocessor giant have increased 28% from their early April lows, Nvidia’s stock (NVDA) has fallen 15% this year.
