Nvidia (NVDA) CEO Jensen Huang stated that the U.S. government does not need to worry about the Chinese military utilizing the company’s products to enhance their capabilities. Speaking on CNN’s Fareed Zakaria GPS, Huang asserted that the Chinese military would avoid relying on U.S. technology due to the inherent risks of potential limitations. “We don’t have to worry about it,” Huang said, adding, “They simply can’t rely on it. It could be, of course, limited at any time.”
These comments directly address Washington’s escalating concerns regarding national security, which have led to increasing restrictions on U.S. technology exports, particularly advanced artificial intelligence (AI) chips, to China.
A Push for Continued Market Access
Huang and other leaders in the semiconductor industry have voiced concerns over the significant revenue losses incurred due to these stringent export rules. Nvidia (NVDA) alone previously estimated a potential $15 billion reduction in revenue from U.S. restrictions on AI chip controls. The CEO argues that the current strategy of limiting access will ultimately fail, as it will only accelerate China’s development of its own domestic AI capabilities, which could eventually rival those produced by the U.S. technology sector.
Nvidia (NVDA) and its peers advocate for continued access to China, the world’s largest market for semiconductors, to maintain the centrality of their products in the global development of AI. Huang recently met with former President Donald Trump, expressing support for the administration’s initiatives to boost domestic semiconductor production. Nvidia (NVDA) has reportedly achieved a $4 trillion market capitalization, underscoring its significant role in the global tech landscape.
Senators Issue Warning Ahead of China Trip
Despite Huang’s assurances, U.S. Senators Jim Banks (R-Ind.) and Elizabeth Warren (D-Mass.) have expressed apprehension regarding his upcoming trip to China. The bipartisan pair sent a letter to Huang, urging him to refrain from meeting with companies linked to the Chinese military or those suspected of undermining U.S. chip export controls.
The senators conveyed their worry that Huang’s visit could “legitimize companies that cooperate closely with the Chinese military or involve discussing exploitable gaps in U.S. export controls.” Huang is reportedly scheduled to visit Beijing, attend the International Supply Chain Expo, and meet with senior Chinese officials, including the commerce minister.
The U.S. government’s concerns stem from the potential for powerful AI hardware to bolster China’s military modernization efforts. While Nvidia (NVDA) has previously adapted its chips, such as creating the A800 from the A100 to comply with export regulations, less powerful chips are still in high demand in China. Additionally, China’s Huawei is seen as a formidable competitor poised to fill any void left by Nvidia (NVDA) in the Chinese market. Nvidia (NVDA) is reportedly planning to introduce a cheaper version of its Blackwell chip for the Chinese market, pending U.S. government approval.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.