Nvidia CEO Jensen Huang revealed that the most recent wave of U.S. semiconductor export restrictions to China will result in an estimated $15 billion loss in sales for the company.
The newly tightened rules, enacted last month, effectively prohibit Nvidia from selling its H20 AI chips—a key product for the Chinese market. The company has already flagged a $5.5 billion charge linked to unsold inventory and purchase commitments in its fiscal first quarter as a direct consequence.
Huang, speaking in a Stratechery interview, described the decision as “deeply painful,” estimating the ban could also mean a $3 billion loss in U.S. tax revenues.
He questioned the wisdom of the policy, arguing the move might inadvertently accelerate the growth of domestic Chinese players, in particular Huawei, which has been ramping up its own AI chip offerings.
The Nvidia founder contends that not only is the ban unlikely to curb China’s AI ambitions, but it may also undermine the U.S. lead in global AI technology. The restrictions, he said, open fresh opportunities for Chinese companies to gain market share and build out their own AI ecosystems.
Huang warned that if Huawei succeeds in advancing its software—a space where Nvidia still claims a substantial advantage with its CUDA platform—the American firm’s dominance could erode.
If Nvidia doe not compete in China, and the new platforms are developed and they’re not American at a time when the world is diffusing AI technology, their leadership and their technology will diffuse all around the world, Huang cautioned.
