Nvidia Aims for a Recovery in the Chinese Market: Jen-Hsun Huang Hopes to Sell More Advanced AI Chips in the Future

Jen-Hsun Huang (Jensen Huang) stated at a press conference in Beijing on Wednesday that Nvidia hopes to sell more advanced products than the current H20 chip to the Chinese market. The H20 is an AI chip specially designed by Nvidia for U.S. export control, and it is a semiconductor product that is slightly less powerful but still possesses artificial intelligence processing capabilities.

"I hope to launch chips that are more advanced than H20 in the Chinese market in the future," Jen-Hsun Huang said in response to a reporter's question. He added, "Technology is always advancing. The Hopper architecture is great right now, but in the coming years, we will introduce more and better technologies. As long as they meet the specifications, they should be allowed to continue evolving in China."

The technology tension between the US and China continues, and Nvidia is cautiously responding to export restrictions.

With the United States implementing multiple rounds of high-tech export restrictions on China, Nvidia has become one of the tech companies most affected. In response to the ban, Nvidia developed several low-tier alternative chips that comply with U.S. regulations, including the H20. However, even so, the restrictions have still had a significant impact on the company's revenue.

Nvidia admitted in May that it faced accounting losses of up to $4.5 billion due to its failure to sell H20 inventory in a timely manner. Without export controls, revenue for that quarter could have increased by $2.5 billion.

Jen-Hsun Huang strongly supports American policies while also speaking for the Chinese market.

In this chess game interwoven with technology and geopolitical factors, Jen-Hsun Huang attempts to maintain balance. On one hand, he praises the United States for revitalizing the semiconductor manufacturing industry, while on the other hand, he repeatedly emphasizes the importance of the Chinese market and calls for a careful assessment of the long-term impact of export restrictions on businesses and industries.

"Our responsibility is to honestly inform the government of the unintended consequences that its policies may bring, although export controls are beyond our control," Jen-Hsun Huang stated in Beijing.

The potential of the AI market in China is enormous, and Jen-Hsun Huang warns that the exit of American companies could lead to significant losses.

Jen-Hsun Huang has stated multiple times that China's artificial intelligence market could grow to a value of 50 billion dollars in the next two to three years. "If American companies cannot participate, it will be a huge loss," he said.

In fact, Jen-Hsun Huang does not shy away from the reality of competition and pointed out that the local Chinese giant Huawei is already prepared to fill the gap left by American tech companies. "If we don't participate, Huawei will fill this void; they already have a strong presence in the Chinese market," he has stated.

The U.S. hints at continuing to allow chip exports: making China reliant on U.S. technology is a strategic consideration.

Although export regulations remain unclear, the U.S. government has recently released slightly positive signals. U.S. Secretary of Commerce Howard Lutnick stated in an interview on Tuesday that the government will continue to allow the sale of a certain level of chips to China.

"China is fully capable of developing its own chips, but we need to stay one step ahead in technology, allowing them to continue relying on American technology," Lutnick stated. The logic behind this strategy is to maintain influence over China's technological development through continuous technological superiority.

Nvidia has already planned a timeline for the future release of more next-generation chips, but whether the U.S. government will approve the export of these chips to China is still unknown. Nvidia can only continue to move forward within the framework of compliance while seeking policy space.

This article Nvidia targets the recovery of the Chinese market: Jen-Hsun Huang hopes to sell more advanced AI chips in the future first appeared in Chain News ABMedia.