• Nvidia CEO Jensen Huang labels US export controls on AI chips to China as a 'failure'.
• Export restrictions led to a significant drop in Nvidia's market share in China from 95% to 50%.
• Huang urges revisions to policies to foster US competitiveness in the AI sector.
• Chinese companies are rapidly filling the market gap, supported by government initiatives.
• The controversy comes amid ongoing US-China tech tensions and calls for policy reevaluation.

Nvidia's CEO Jensen Huang has openly criticized the US government's export controls on artificial intelligence (AI) chips to China, describing them as "a failure." Speaking at the Computex conference in Taipei, Huang stated that these restrictions have backfired, undermining the competitive position of American companies while empowering Chinese firms to pursue self-sufficiency in technology. "The fundamental assumptions that led to the AI diffusion rule... have been proven to be fundamentally flawed," he remarked, highlighting a significant shift in market dynamics where Nvidia's share in China plummeted from 95% to 50% during the Biden administration, according to Reuters, The New York Times, and SCMP.

Huang pointed out that the US restrictions inadvertently fueled the growth of Chinese technology firms, particularly Huawei, which have rapidly filled the void left by Nvidia. He concluded that the US export controls have "given [Chinese companies] the spirit, energy, and government support to accelerate their development," placing American firms at a competitive disadvantage. This sentiment was echoed by Huang in various forums, most recently at the Computex event, as reported by TRT Global and India Times.