Nvidia CEO says being locked out of China AI market would be 'tremendous loss'
CNBCMAY 3
NVIDIA Plans Downgraded AI Chip for China Amid Export Controls
Above: Photo illustration of a NVIDIA circuit board in Hangzhou, China, on April 10, 2025. Image copyright: LONG WEI/Contributor/Feature China/Future Publishing via Getty Images
The Spin
Narrative A
Producing a viable alternative to the H20 is essential to ensure NVIDIA retains access to the Chinese market, which could possibly be worth as much as $50 billion in the coming years. Without such access, NVIDIA would be cut off from a considerable percentage of its revenue and forced to surrender a growing chunk of the global AI market to Chinese competitors, who could use that leverage to undermine the leading position of the U.S. company.
Narrative B
Despite NVIDIA’s best efforts, the damage is done. The export controls have handed over the growing Chinese market to domestic competitors, most notably Huawei, whose newly launched chips rival even NVIDIA’s H20 processor. NVIDIA’s rumored replacement for China may avoid American regulations, but its downgrades will mean it cannot compete with the likes of the Ascend 910D or Ascend 920.