Jensen Huang warns against Chinese AI opponents, as Nvidia loses $ 8 billion in a quarter amid US export ties | Company Business News

Chipmaker Nvidia CEO Jensen Huang has warned that Chinese AI businesses are progressing rapidly due to US export restrictions. He noted that Huawei became a strong participant in the midst of these curbs. “The Chinese participants have developed,” Huang said in an interview with Bloomberg Television on Wednesday. The Chinese company Huawei Technologies Co., which was blacklisted by the US government, became “fairly formidable,” he said. The export restrictions imposed by the United States on China have effectively prevented Nvidia from gaining access to its largest disc market. As a result, the company expects to lose $ 8 billion in sales this term. Huan insists that the US government of Donald Trump should facilitate restrictions during a quarterly earnings call Wednesday. US export restrictions The Biden Administration introduced the AI ​​Diffucial rule in January to regulate the global distribution of advanced AI technologies. The AI ​​distribution rule was previously opposed by Huang. In May, the Trump administration announced that it was recalling this rule, which reportedly gives little relief to AI businesses. The gap between US and Chinese products is decreasing instead of keeping AI technology away from Chinese businesses, local firms simply discover alternatives, Huang said. The most important buyers of Nvidia, such as Tencent Holdings Ltd. And others, can’t blame him to be moved to Huawei because they can no longer depend on US suppliers, he added. “Like everyone, they double every year, and the volume is increasing significantly,” Huang said. He further warned that the gap between American products and Chinese alternatives is declining. The execution of Huawei’s latest AI chip is similar to Nvidia’s own H200, a modern component until its replacement has been found in recent months. Export tires on H20 chips According to the latest rules, Nvidia cannot even export its H20 chip, a downgraded version of H200, to China. In April, the Trump administration sent a letter to Nvidia stating that it needed an export license for the company’s H20 chip, according to various reports. He said that reducing the product’s capabilities is not possible. Huang said Nvidia could produce alternatives to the H20. However, no current slide is planned. If it intends to do so, the company will have to seek permission from Washington. “You can’t underestimate the importance of the China market,” Huang said. “It’s home to the world’s largest population of AI researchers,” he added. Huang insisted on all the world’s AI researchers and developers to use US technology. “Regardless of the success of the near -term revenue we have had, we cannot ignore the fact that the Chinese market is very important,” he said. (With input from Bloomberg)