The CEO of Nvidia, Jensen Huang , recently granted an interview to CNN, where he spoke candidly about the current landscape of his company, Nvidia’s position in the AI race , the numerous advantages of this technology, and other pertinent topics shaping today’s tech environment. Furthermore, he shared his insights on the ongoing trade war with China, the associated restrictions, and the possible applications of American technology in military contexts in China.
Concerns Over Military Use. The U.S. has previously expressed concerns regarding the possibility of advanced Nvidia chips being utilized by the Chinese military. These apprehensions led to the implementation of restrictions on the A100 and H100 chips. However, there are reports suggesting that these chips may still be reaching the Chinese military despite the ban. Recent investigations indicate that some A100 and H100 chips have indeed made their way into Chinese military applications.
Nvidia’s Contentment. Huang has downplayed the U.S. government’s concerns about the military applications of its AI chips in China, arguing that the Chinese military cannot fully rely on American technology due to the risk of sudden restrictions. His comments come at a time when Nvidia is poised to resume sales of its H20 processors in the Chinese market, shortly after engaging in discussions with former President Donald Trump in the White House.
<img alt="The AI has no future without nuclear energy when even Nvidia has begun to pray to Bill Gates reactors" width="375" height="142" src="https://i.blogs.es/dc2608/terrapower-ap/375_142.jpeg"/>Huang’s Position on U.S. Policies. In the interview, Huang robustly defended the notion that “we do not have to worry” about the military application of American technology in China, claiming that “they simply cannot trust it.” He elaborated that Beijing would prefer not to depend on U.S. components because of the potential for future limitations. According to him, China already possesses “a lot of computing capacity” and does not necessarily require Nvidia chips to enhance its military capabilities.
Impact of Restrictions on Nvidia. The export controls imposed by American administrations on the most advanced semiconductors stem from fears of bolstering Chinese military capacities. These bipartisan measures have cost Nvidia billions in potential sales revenue. Reports indicate that Nvidia lost approximately $15 billion in sales following the restrictions enacted by the Trump administration, alongside an additional write-off of $5.5 billion in inventory.
Walking a Tightrope Between Two Powers. Nvidia is clearly making substantial efforts to navigate the complexities between Washington and Beijing. Huang has voiced criticism of control policies, arguing that they are counterproductive for American technological leadership. According to him, for the U.S. to maintain its position as a leader in AI, its technology must be accessible internationally, including in China, home to nearly half of the world’s developers.
Under increasing pressure from American senators, Huang has been specifically instructed to steer clear of meeting with entities tied to the Chinese military or intelligence during his planned visit to Beijing. Meanwhile, Nvidia continues to face stiff competition from Huawei and other Chinese chip manufacturers, although many tech companies in China still seek out Nvidia’s processors for their robust CUDA platform .
<img alt="Chips increasingly matter in the AI War. What matters is who knows how to connect them" width="375" height="142" src="https://i.blogs.es/e33297/data-center-imagen/375_142.jpeg"/>Future Plans. Nvidia has officially announced that it will be applying for licenses to resume sales of the H20 Chip to China. The U.S. government has assured Nvidia that these licenses will be granted soon. Additionally, the company has developed a new processor specifically designed to align with current regulations: the RTX Pro GPU , part of the Blackwell architecture , is attentively tailored to adhere to export controls.
China represents 13% of Nvidia’s total income, roughly $17 billion , which illuminates why Huang adopts an optimistic approach toward the Chinese market despite the geopolitical pressures from both nations. The H20 chip was engineered explicitly for the Chinese market post-restrictions in late 2023, ultimately becoming the most potent product available until its prohibition in April 2024.
Cover image | Nvidia
In Xataka | The Nvidia’s supercomputer costs millions of dollars. And to work we use a switch with three kilometers of cable.