Nvidia’s CEO Jensen Huang warns of a ‘tremendous loss’ if U.S. firms lose access to China’s $50 billion AI market
Washington flea checks refuse American companies such as access to Nvidia to a huge and growing ia flea market in China, CEO Jensen Huang said on Tuesday, weeks after the flea manufacturer admitted that he would have taken a 5.5 billion dollars from sales blocked in the second world economy.
“China is a very large market. It will probably be a $ 50 billion market over the next two or three years. It will be a huge loss of not remedying it as an American company,” said Huang in a interview with CNBC. He added that access to the Chinese AI market would create jobs in the United States
Huang has long spoke positively about China and its AI sector, calling it a “key market” for Nvidia in mid-April during a surprise visit to the country. He also warned that the country's closure could harm the interests of the United States and Nvidia by encouraging “strategic competitors” like Huawei.
Nvidia recently revealed that a $ 5.5 billion is needed after the United States decided to prevent the flea manufacturer from selling his china china without license. (Nvidia designed the H20 chip to comply with previous American export controls).
Tuesday, AMD revealed that he would also take a $ 1.5 billion has reached income Updated American checks. Like NVIDIA, AMD also manufactures graphic processing units (GPU) which are essential to supply AI applications.
Washington for the first time imposed on large export controls on China in October 2022 and regularly concluded gaps in its sanctions regime in the following years. The rules go beyond Nvidia and AMD to also affect manufacturers who produce the tools used to make fleas.
US companies like NVIDIA may want to keep access to the huge Chinese market, but they can also be worried about growing competition from local players like Huawei. Huang previously warned that China is not far behind the United States in AI competition.
A report by the Center for Strategic and International Studies, a Washington DC-based reflection group, published in March, said that China had “reduced” AI gap with the United States and that it was not realistic to expect an example of more than two years.
China has spent years investing billions in its local semiconductor to try to wean on fleas and chip manufacturing equipment abroad. Beijing also encourages companies to use fleas made in the country as much as possible.
During the weekend, the Financial time reported That Huawei builds a production line for advanced fleas, part of a wider effort to move the entire AI chip chain in China. Huawei will also prepare to test his latest Ascend Series chip, a competitor of Nvidia products.
This story was initially presented on Fortune.com
