NVIDIA Director General Jensen Juang expressed his opinion on the new trade sanctions of the United States, emphasizing that they would bring “unfavorable” consequences for the market of mainland China.
Fresh American restrictions create scope for Chinese companies in the field of artificial intelligence, such as Huawei, thanks to their own products in this area. Nevertheless, the head of Nvidia retains the hope of continuing cooperation with Chinese clients.
Recently, the Biden administration revised export restrictions on China, including blocking the supply of several AI chips to the country. The United States fears that the rapid development of artificial intelligence in China can provide the country with a military advantage, therefore they consider it the right step to limit the supply of graphic processors, such as NVIDIA H800 and A800. However, with the introduction of the new politicians, the largest manufacturer of the graphic processors NVIDIA expressed fears, noting that this, of course, will affect its market share in mainland China.
In an interview with local media, Jensen Juang said that Nvidia respects the US decision to put the country’s interests in first place, and the company will ultimately follow new provisions. The head of NVIDIA also noted the company’s desire to actively expand its global markets, wanting to serve its long-standing customers in China. His words hint that NVIDIA “involuntarily” will adhere to new politicians, pushing customers from mainland China to the background, at least at the moment.
In addition, NVIDIA is aware of competition from Chinese companies, such as Huawei, striving to satisfy the needs for AI in the region. Interior in China is especially actively developing internal solutions related to artificial intelligence. The strongest competitor NVIDIA is currently Huawei, which has developed AI chips with comparable computing power.
Chinese II IFlytek states that the GUAWEI graphic processors correspond to the current assortment of II chips from NVIDIA. With new American restrictions on Huawei, a golden opportunity opens up a huge demand from the AI industry, which can seriously threaten the established NVIDIA business in China.
It will be interesting to see how NVIDIA adapts to new American politicians, since the company predicts large income in which the Chinese consumer base plays an important role. Perhaps NVIDIA will offer additional “truncated options” of products or find a way to circumvent new sanctions.