Nvidia's Jensen Huang thinks U.S. chip curbs failed — and he's not alone

Core Viewpoint - U.S. export controls on advanced semiconductor technology aimed at curbing China's military advancements and maintaining U.S. leadership in AI have largely failed, causing more harm to American businesses than to China [2][12]. Group 1: Impact of U.S. Export Controls - U.S. semiconductor export controls have been in place for several years, initially targeting China's military capabilities and the AI industry [2][6]. - Nvidia's market share in China has significantly decreased from 95% to 50% over the past four years due to these restrictions [4]. - The controls have inadvertently accelerated China's domestic innovation and development in AI and semiconductor technology [5][9]. Group 2: Consequences for U.S. Companies - The restrictions have limited U.S. companies' access to the Chinese market, while simultaneously fostering competition within China [5][12]. - Nvidia has reported a loss of at least $15 billion in sales due to these export controls, impacting its ability to invest in future innovations [13]. - The evolving nature of these controls has created confusion and collateral damage, leading to questions about their effectiveness [11]. Group 3: China's Response and Developments - Chinese companies, such as Huawei, are developing their own AI chips, benefiting from the U.S. restrictions [7][8]. - The restrictions have spurred an increase in startups and talent within China's semiconductor and AI sectors [9]. - Observers note that China's advancements in AI, such as DeepSeek's R1 model, challenge the effectiveness of U.S. export controls [8].