After 'admitting' Nvidia market share has fallen to Zero in China, CEO Jensen Huang says: China has to decide ..

Nvidia CEO Jensen Huang recently acknowledged that the company’s market share in China has dropped to ‘zero’, underscoring the challenges facing US chipmaker's in the world’s second-largest economy. Huang made the remark during an interview on an episode of the Special Competitive Studies Project’s Memos to the President last month. “Nvidia had, you know, call it 90-some odd percent of the world’s market share. Today, in China, we have now dropped to zero,” said Huang. However, as per the latest Bloomberg report, Huang believes that sooner or later China will open its market for the US made chips. Speaking in an interview with Bloomberg Television after joining US President Donald Trump’s summit in Beijing, Huang said that the decision ultimately rests with the Chinese authorities. “The Chinese government has to decide how much of their local market do they want to protect. My sense is that over time the market will open,” he said.

Role of US President Donald Trump on chip talks

Jensen Huang was the last-minute addition to Trump’s delegation of US business leaders during high-stakes meetings with the Chinese President Xi Jinping. While Huang did not directly negotiate with the Chinese officials, but he confused that the topic of Nvidia’s H200 chips came up in discussions. Trump later said that the issue was raised and hinted that “something could happen,” though China has so far withheld approval, citing its push for self-sufficiency and support for domestic champions like Huawei.

Beijing’s strategy is becoming clearer. Rather than depending on Nvidia, China is pushing its tech industry to use homegrown chips, particularly those made by Huawei. AI companies like DeepSeek have already made a point of highlighting their use of domestic chips. Speaking to Chinese state broadcaster CCTV, Huang expressed hope that Trump and Xi's “good relationship” would help improve ties between the two countries.

A $50 billion opportunity at risk

Huang has previously described China as a $50 billion opportunity for Nvidia. In March, he said the company had received US clearance to ship H200 chips to “many customers” in China and was preparing production accordingly. However, Chinese firms later informed Nvidia they could not fulfill the orders.

Nvidia CEO Jensen Huang on competition with China

Recently, Nvidia CEO Jensen Huang fired back at critics who argue the US should completely cut off China from advanced artificial intelligence (AI) chips. The tech billionaire dismissed the idea that American companies should simply surrender foreign markets out of fear of competition, calling the mindset “completely ridiculous.”

“The idea that I regard as completely ridiculous is: why should American companies go compete in foreign countries if you are going to lose it anyway?” Huang said.He said if the same philosophy is followed in real life, why do we need to wake up when we have to eventually die. “If you guys all apply that same philosophy, why wake up in the morning? If you want me to lose, you are going to have to deal it to me.”

Huang’s response came after an incident on the popular Dwarkesh Podcast, where he was questioned whether the US should sell AI chips to China. Dwarkesh Patel asked if giving China powerful AI chips could harm US companies and national security – and even used an example of Anthropic’s Mythos.

In response, Huang said China doesn’t need super high-end chips to challenge US tech stature. He said that Mythos was trained on “fairly mundane capacity,” meaning it didn't need super high-end chips, as stated by Tom's Hardware. He also repeated that China already has a lot of computing power, even if it's not as advanced as Nvidia's chips.