CNBC AI Exclusive | May 23 – The U.S. appears to be doubling down on its AI chip export controls targeting China, despite repeated appeals from NVIDIA CEO Jensen Huang for regulatory leniency. Industry analysts warn the standoff is reshaping global tech competition dynamics.
Huang, a vocal critic of the Biden administration’s semiconductor restrictions, argued at a recent global media briefing that such policies risk accelerating China’s pursuit of technological self-sufficiency. “More than half of advanced AI research originates from Chinese institutions today,” he noted, citing breakthroughs by domestic firms like DeepSeek and Huawei. “By blocking access to U.S. chips, we’re essentially handing China the blueprint to build its own ecosystem.”
NVIDIA’s financial disclosures reveal the tangible impact: Market share in China’s AI sector plummeted from 90% during peak Biden-era operations to about 50% today. Huawei’s Ascend chips now dominate the void, capitalizing on geopolitical tensions to emerge as NVIDIA’s primary regional competitor.
Sources familiar with White House deliberations confirm no immediate policy shifts. A senior U.S. trade advisor told CNBC: “There’s bipartisan consensus that advanced AI capabilities fall under national security priorities. We cannot risk technological leakage through dual-use exports.” This stance maintains strict bans on exporting NVIDIA’s H20 chips to China while extending restrictions to third-party use of Huawei processors globally.
In response, NVIDIA plans to launch Blackwell-architecture chips tailored for Chinese compliance by July – a strategic pivot that analysts describe as “damage control.” However, tech policy experts question whether watered-down alternatives can compete with China’s intensifying R&D investments.
The escalating tech decoupling presents a paradox: While designed to preserve U.S. leadership, current restrictions may ultimately dim American influence in shaping AI’s global trajectory. As Huang cautioned, “Leadership isn’t maintained through barriers – it’s earned through indispensable innovation.”
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