Nvidia CEO Jensen Huang announced that the company’s share of the AI ​​accelerator market in China has fallen to zero percent. This is a remarkable change considering that the company had a huge dominance in the Chinese market just two years ago.

Huang made this statement in an interview with US journalists at the Special Competitive Studies Project, an initiative that aims to increase long-term competitiveness. Arguing that the export restrictions imposed by the US government are strategically counterproductive, Huang stated that these policies should be updated dynamically.

Impact of export restrictions and local alternatives

Stating that it does not make strategic sense to completely lose a huge market like China, Huang emphasized that it makes sense for American chip companies to operate in China. Predictions made by Bernstein earlier in the year predicted that Nvidia’s share of the AI ​​GPU market in China could fall from 66 percent in 2024 to 8 percent in the coming years.

The main reasons for this decline include the restrictions imposed by the US government and the development of local producers to meet 80 percent of the demand. Chinese developers are increasingly relying on hardware made by local companies such as Huawei, Cambricon, Moore Threads and MetaX.

Competition on the software side continues

Local companies are making significant progress in both silicon and software. However, the CUDA software ecosystem, which is the biggest advantage of American artificial intelligence technology in China, remains an obstacle that local companies have not yet fully overcome.

This table, based on Nvidia’s direct sales data, once again reveals the impact of global trade policies on companies in the technology world. Huang’s statements also reflect the efforts of technology giants to adapt to changing geopolitical balances.

It remains a matter of curiosity how the US’s export policies will shape this radical change in the technology sector. How do you think Nvidia’s loss in the Chinese market will affect global technology competition?