Nvidia CEO Discusses Impact of US Export Controls on China Amid AI Innovations

Nvidia CEO Jensen Huang has expressed concerns over the impact of US export controls on China, stating that the company’s revenue percentage from China has halved since the restrictions were imposed in 2022. Huang highlighted that the export controls have significantly affected the company’s business abroad, with China’s revenue percentage dropping from 21% to 13% of total revenue over the past two fiscal years.

In a CNBC interview, Huang questioned the effectiveness of the export controls in curbing innovation, particularly in light of Chinese AI startup DeepSeek’s latest model. He noted that despite the challenges, software continues to innovate, and competition from Chinese companies like Huawei remains strong.

“It’s hard to tell whether export control is effective,” Huang said. “I think that ultimately, software finds a way. Maybe that’s the easiest way of thinking about it.”

Despite the export restrictions and a brief market shock following DeepSeek’s announcement, Nvidia reported a robust quarter with total revenue of $39.3 billion, marking a 78% year-over-year increase. The company’s market cap briefly dropped by nearly $600 billion after the DeepSeek release but has since recovered, currently standing at $3.22 trillion.