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Nvidia CEO says AI innovations like China's Deepseek show how 'software finds a way' amid US export controls

Feb 27, 2025 - businessinsider.com
In 2022, the US imposed export controls on high-end chips to China, significantly impacting Nvidia's business in the region. Nvidia CEO Jensen Huang noted that the company's revenue from China was halved due to these restrictions, dropping from 21% of total revenue in the fiscal year ending January 2023 to 13% by January 2025. Despite these challenges, Nvidia continues to face stiff competition from Chinese companies like Huawei, and Huang believes that software innovation will persist regardless of hardware restrictions.

While Nvidia's China revenue has declined, the company has maintained strong overall performance, reporting a 78% year-over-year revenue increase to $39.3 billion. Nvidia experienced a temporary market cap drop following the release of Chinese AI startup DeepSeek's R1 reasoning model, but it has since recovered, with its valuation reaching $3.22 trillion. Huang remains uncertain about the effectiveness of export controls as a national security measure, emphasizing that software development will adapt to various systems.

Key takeaways:

  • The US imposed export controls on high-end chips to China in 2022, impacting Nvidia's revenue from China.
  • Nvidia CEO Jensen Huang expressed uncertainty about the effectiveness of these export controls as national security measures.
  • Despite the export restrictions, Nvidia reported a strong quarter with a 78% year-over-year revenue increase to $39.3 billion.
  • Nvidia's market cap experienced a brief drop after DeepSeek's R1 model release but has since recovered to a valuation of $3.22 trillion.
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