- According to CEO Jensen Huang, Nvidia has lost its entire market share in the Chinese industry.
- This is happening due to the restrictive US laws that prohibit Chinese tech giants from purchasing AI chips and hardware.
- The Nvidia CEO believes US policies are overly restrictive in this regard.
The United States and China have a long history of tense relations, especially in the technology sector, at a time when AI dominates the market.
This has been the case in recent years, and to prevent the Chinese from getting a competitive advantage, limitations have been established, prohibiting them from purchasing advanced AI chips and machinery. This had a significant influence on companies such as Nvidia and their popular GPUs.
Despite this, Samsung came to an agreement that if they released scaled-down copies of their GPUs, they could sell them in China. However, it was too late as China had effectively rejected Nvidia, and Jensen Huang claims they have a 0% market share in AI GPUs due to US policies.
As China made rapid progress in AI, Nvidia attempted to profit by selling GPUs to the Chinese industry, but things did not go as planned.
In fact, Nvidia’s CEO said that the company’s market share in China is 0%. This is difficult to accept, given that it is the world’s leading firm in AI hardware and graphics cards. According to Jensen Huang, due to US export laws, there is no interest in Chinese graphics cards, and companies prefer to use their own processors.
An analyst predicted that Nvidia’s AI market share in China would fall from 66% in 2024 to 8% in the coming years, but the CEO claims that the situation is even worse. It’s worth noting that this 0% number only applies to Nvidia’s direct sales to clients in China.
However, there are still companies interested in its GPUs who prefer to buy them from third-party countries. Jensen Huang argues that US policies are overly restrictive and have proven ineffective.
It was the year 2022, and the United States began placing restrictions that prevented the sale of Nvidia A100 and H100 GPUs. Following this, Nvidia had to produce smaller GPUs equivalent to them, known as the A800 and H800.
After a few years, the restrictions were increased in 2024, even prohibiting cut-down graphics cards such as the Nvidia H20. In 2025, we saw a surge in graphics card smuggling, with China purchasing from third-party markets to bypass controls.
With the near-total domination of “made in China” AI chips, interest in American hardware is fading as the country strives for technical independence.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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