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May 29 - Nvidia (NASDAQ:NVDA) CEO Jensen Huang said Thursday that Chinese AI firms are rapidly advancing to fill the gap left by U.S. exits, according to a Thursday Bloomberg Television interview. He singled out Huawei Technologies as quite formidable in developing AI capabilities.
Huang noted that recent U.S. export restrictions have effectively blocked Nvidia from China's vast chip market. He estimated these measures have already cost the company about $15 billion in revenue and will shave roughly $8 billion off second-quarter sales.
He warned that losing access to what he described as a nearly $50 billion AI accelerator market could benefit global competitors. Despite this, Huang said Nvidia is exploring limited avenues to remain active under the new rules, although details remain scant.
The CEO also emphasized that countries worldwide view AI infrastructure as critical, likening its importance to electricity and the internet. He pointed to growing sovereign investments in AI projects in regions such as Saudi Arabia, the United Arab Emirates and Taiwan.
Looking ahead, Huang suggested Nvidia will continue to innovate around export challenges to maintain its leadership in AI computing, even as geopolitical tensions reshape industry dynamics.
This article first appeared on GuruFocus.