{"id":647436,"date":"2026-05-03T18:44:10","date_gmt":"2026-05-03T18:44:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/647436\/"},"modified":"2026-05-03T18:44:10","modified_gmt":"2026-05-03T18:44:10","slug":"jensen-says-nvidia-now-has-zero-percent-market-share-in-china-says-us-export-policy-has-already-largely-backfired","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/647436\/","title":{"rendered":"Jensen says Nvidia now has ‘zero percent’ market share in China \u2014 says US export policy ‘has already largely backfired’"},"content":{"rendered":"

Nvidia CEO Jensen Huang said that the company’s market share of AI accelerators in China has now dropped to 0%. The drop is staggering, given that the company owned a lion’s share of China’s AI accelerator market just about two years ago<\/a>.<\/p>\n

“In China, we have now dropped to zero,” said Jensen Huang in an interview with the Special Competitive Studies Project<\/a>, a bipartisan initiative by American lawmakers aimed at ensuring long-term competitiveness of the U.S. “Conceding an entire market the size of China probably does not make a lot of strategic sense, so I think that has already largely backfired. Maybe it made sense at the time, but I think the policy really needs to be dynamic and needs to stay with the times. I think it would be fairly safe to say that having American chip companies and other companies in China makes a lot of sense.”<\/p>\n

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Earlier this year, Bernstein estimated that Nvidia\u2019s share of China\u2019s AI GPU market could fall from 66% in 2024 to roughly 8% in the coming years, both due to restrictions imposed by the U.S. government and because domestic vendors are moving to cover up to 80% of demand. According to Huang, this happened much later, though, again, he only talks about Nvidia’s direct sales to Chinese customers.<\/p>\n

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Meanwhile, Huang warns that even without leading AI GPUs and software stacks developed in America, China remains a formidable competitor when it comes to frontier AI models.<\/p>\n

“American companies win around the world,” Huang said. “The argument there is that across the five-layer cake, there’s one particular layer that is too important because in the others, China can get ahead. They have cheaper energy. They have incredible talent. So, they [have] the number of science and math experts, and as a result of that, the number of AI researchers in China is quite extraordinary, it’s one of their national treasures.”<\/p>\n

Given the situation, Huang also contends that U.S. export controls may be strategically counterproductive. He argues that conceding a market of that scale accelerates China’s push toward self-sufficiency, while continued participation of American companies in that market would help extend the global reach of the American AI technology stack.<\/p>\n

Indeed, Chinese developers are increasingly relying on local hardware, with companies like Huawei, Cambricon, Moore Threads, and MetaX advancing both silicon and software. In software \u2014 the so-called CUDA moat in particular \u2014 remains the main frontier of American AI technology in China that local companies have yet to conquer.<\/p>\n

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Ultimately, Huang warns that fear-driven narratives and export controls could slow the deployment of AI more broadly as China and other regions embrace it more aggressively as an economic tool. Long-term leadership will depend less on restricting global rivals and more on ensuring that the American AI ecosystem dominates globally, according to Huang.<\/p>\n

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\"Google\n<\/p>\n

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Follow Tom’s Hardware on Google News<\/a>, or add us as a preferred source<\/a>, to get our latest news, analysis, & reviews in your feeds.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia CEO Jensen Huang said that the company’s market share of AI accelerators in China has now dropped…\n","protected":false},"author":2,"featured_media":647437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-647436","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/647436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=647436"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/647436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/647437"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=647436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=647436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=647436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}