NVIDIA (NVDA, Financial), led by CEO Jensen Huang, announced that the company will no longer modify its Hopper H20 AI chips for the Chinese market due to U.S. export restrictions. Currently, the Hopper H20 is the only AI chip NVIDIA can legally export to China. With the U.S. tightening control over high-end AI chip exports, NVIDIA's market share in China has been adversely affected.
To regain its position, NVIDIA plans to release a downgraded version of the H20 chip in two months, aiming to compete with local Chinese AI chipmakers like Huawei. The export limitations have enabled companies like Huawei to present competitive alternatives in the high-end chip market.
Jensen Huang has previously criticized the U.S. government's export policy, arguing it hinders innovation. He believes the U.S. should encourage the global adoption of American technology rather than imposing restrictions.
Earlier, President Trump indicated plans to revoke the Biden administration's AI export framework, which aimed to restrict AI chip exports to maintain U.S. technological dominance. Despite these challenges, China remains a vital growth market for NVIDIA, contributing approximately $17 billion in revenue, 13% of its total annual revenue.