Nvidia CEO Jensen Huang stated that the United States' export controls on artificial intelligence chips to China have been "a failure." He noted that these controls have led Chinese companies to turn to locally-developed technology as an alternative.

Huang emphasized that companies would resort to "second best" options if they couldn't acquire chips from the American AI leader, Nvidia. This situation has spurred Chinese companies to purchase semiconductors from domestic designers like Huawei.

The US restrictions have also pushed China to aggressively invest in and develop a supply chain independent of foreign manufacturers. Huang highlighted the talent and determination of local companies, noting that the export controls provided them with the spirit, energy, and government support needed to accelerate their development. He made these remarks at a tech show in Taiwan.

Huang added that Nvidia's share of China's AI chip market has significantly decreased from nearly 95 percent at the beginning of former President Joe Biden's administration to 50 percent. In recent years, the US has attempted to limit exports of advanced chips to China due to concerns that they could be used to advance China's military systems and threaten American dominance in AI.

Last week, the administration of US President Donald Trump rolled back some curbs after complaints that countries were being cut off from essential technology needed for AI development. Huang praised Trump's approach to AI, stating that the president understood that US companies were not the only providers of such technology, referring to the prior rules as "exactly the wrong goal."

In response to US warnings against using advanced computer chips from China, including Huawei's Ascend AI chips, China called on the US to "immediately correct its wrongdoings" and cease "discriminatory" measures. China's commerce ministry asserted that the US move seriously undermined consensus reached at a high-level bilateral trade dialogue held in Geneva and threatened to take firm steps if Washington continues to substantially harm Beijing's interests.