The chip ban against China amounts to giving up a $50 billion market! Jen-Hsun Huang criticized it as a mistake, while White House AI advisor Krishnan stated: the policy remains unchanged.

NVIDIA CEO Jen-Hsun Huang (Jensen Huang) strongly criticized the U.S. government's ban on AI chip exports to China at a press conference during Computex in Taipei on May 21. He stated that this policy is fundamentally a failure, and the market size of AI chips in China is expected to reach $50 billion by 2026. Moreover, NVIDIA's market share in China has dropped from 95% four years ago to only 50% now. He further pointed out that if the U.S. government continues to prevent China from developing AI, it will only make China more determined. Following this news, Sriram Krishnan, AI technology policy advisor at the White House, responded in an interview with Bloomberg, saying: "We still respect Jen-Hsun Huang's views, but we will not ease restrictions on China."

Directly criticize the error of the chip export ban to China, don’t give the $50 billion market to competitors.

According to reports, Huang Jenxun bluntly said at the Computex press conference that the United States' chip restrictions on China will have the opposite effect, which in turn will allow Chinese companies such as Huawei (Huawei) to take advantage of the rise.

It further points out to the year 2026:

"The scale of the Chinese chip market is expected to reach 50 billion dollars. If NVIDIA continues to face shipping restrictions, Chinese companies will turn to purchase chips from other manufacturers."

The United States has banned the export of H20 chips to China, forcing Nvidia to incur a loss of 5.5 billion dollars.

Jen-Hsun Huang also revealed that NVIDIA specially designed a lower-spec version of the H20 chip for export to China in order to comply with the previous export regulations, but after the new round of bans from the United States took effect, this batch of chips could not be exported.

He stated: "We can only recognize a loss of 5.5 billion dollars; these chips can only be scrapped."

Met with Masayoshi Son in Taipei to discuss the 500 billion USD StarGate project

Jen-Hsun Huang also revealed that he met with SoftBank CEO Masayoshi Son in Taipei to discuss the construction project of the StarGate AI data center, which amounts to 500 billion dollars and is expected to use a large number of NVIDIA chips, but currently the funding is stuck.

The White House responded to Jen-Hsun Huang's statement, saying: "We will not ease restrictions on China."

After the news broke, Sriram Krishnan, the AI technology policy advisor at the White House, responded in an interview:

"We respect Huang's views, but we will not relax restrictions on China." Both Democrats and Republicans agree that the flow of advanced chips into China is a threat to US national security."

It will relax restrictions on other allies, but the United States still wants to dominate the global AI technology framework.

Although it is said that restrictions on China will continue, Krishnan also stated that export restrictions will gradually be relaxed for friendly countries like the UAE.

But he emphasized that the United States will continue to play a leading role in dominating the global AI technology framework, ensuring that technology does not flow out, and has reached a consensus with Jen-Hsun Huang.

How to balance the blockade policy and market share, the contradictions continue to be a tug-of-war.

In summary, Jen-Hsun Huang's criticism highlights the costs and risks of the U.S. chip blockade policy, but the Trump administration remains unaffected by this and continues to maintain restrictions on chip exports to China.

Both sides still have fundamental differences in strategic direction, with one side advocating for openness to maintain market share, while the other insists on closure to safeguard national security.

How American companies and policymakers strike a marvelous balance between "technological leadership" and "national security" will be a key watershed in determining whether the global technology order can stabilize.

( NVIDIA H20 chip faces U.S. export restrictions to China! Estimated loss of 5.5 billion dollars, dropped 6.3% after hours )

This article means giving up a $50 billion market due to the chip ban! Jen-Hsun Huang criticized it as a mistake, and White House AI advisor Krishnan: the policy remains unchanged. First appeared in Chain News ABMedia.