"China's AI moves on with or without U.S. chips. It has to compute to train and deploy advanced models. The question is not whether China will have AI, it already does. The question is whether one of the world's largest AI markets will run on American platforms."
"The financial stakes are not abstract. Nvidia took a $4.5 billion inventory charge in Q1 FY2026 tied directly to H20 export restrictions imposed in April 2025. Another $8 billion in H20 revenue was expected to evaporate in Q2."
"The AI race is not just about chips. It's about which stack the world runs on. When Chinese developers build on Huawei's Ascend ecosystem instead of Nvidia's CUDA stack, they create an alternative that can then be exported globally."
"U.S. platforms must remain the preferred platform for open-source AI. That means supporting collaboration with top developers globally, including in China. America wins when models like DeepSeq and QN run best on American infrastructure."
Nvidia's CEO Jensen Huang advocates for permitting chip sales to China, arguing that blocking sales does not halt China's AI development. Instead, it diverts spending to domestic alternatives, costing American firms billions. Huang emphasizes the importance of maintaining a competitive edge in the AI market, as China will continue to develop AI regardless of U.S. restrictions. He warns that export controls could lead to a rival ecosystem that undermines American platforms, stressing the need for U.S. dominance in open-source AI collaboration.
Read at 24/7 Wall St.
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