Nvidia has warned that tension between the United States and China could impact its business despite record sales growth.
According to Reuters, the leading artificial intelligence (AI) chip company Nvidia, after a record-breaking quarter of 69% sales growth this week, expressed concern over the impact of the technology conflict between the two leading economies of the world, China and the US, on its business.
The company also, for the first time ever, accepted that restrictions on the use of open-source AI models from China, like Deepseek and Qwen, could negatively impact its business and highlighted that the US rule to block connected vehicle technology from China also affected the automotive chip business that finally began to flourish.
Nvidia CEO Jensen Huang praises Trump's AI export rule
However, Jensen Huang, during a conference call with analysts, hailed US President Donald Trump’s decision to end an export rule introduced by former president Joe Biden that would have impacted the company’s global chip sales.
On the other hand, he also slammed Trump administration’s new export restriction imposed in April, which stops the company from selling its H20 chip made for the Chinese market, which Huang describes as "a springboard to global success."
Huang also said, “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. AI export controls should strengthen U.S. platforms, not drive half of the world's AI talent to rivals."
"US 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 DeepSeek and Qwen run best on American infrastructure," he added.
Notably, Nvidia lost $2.5 billion in sales during its just-ended fiscal first quarter due to export limitations and is expected to lose another $8 billion in sales during the second quarter.
