NVIDIA CEO Jensen Huang argues the U.S. should permit advanced AI chip sales to China. He states current export restrictions fail to halt China's progress and instead divert billions to domestic Chinese competitors. Huang emphasizes that China will develop AI capabilities regardless of U.S. policy.
The company faces significant financial impact from these export controls. NVIDIA recorded a $4.5 billion inventory charge in the first quarter of fiscal 2026. The company anticipates $8 billion in lost revenue for the second quarter. NVIDIA's guidance for the first quarter of fiscal 2027 excludes all data center compute revenue from China.
Huang frames the issue as a platform war between American and Chinese ecosystems. He warns that blocking sales accelerates the development of rival stacks to NVIDIA's CUDA platform.