Nvidia’s market share for AI accelerators in China has dropped to 0%, according to CEO Jensen Huang. This drastic decline follows stringent US export controls that have effectively barred Nvidia from selling its products in the country.
Huang noted, “In China, we have now dropped to zero.” Just two years ago, Nvidia held a significant 66% of the Chinese AI accelerator market. The company’s direct sales to Chinese firms have ceased entirely, leaving a considerable gap that local competitors are eager to fill.
Domestic vendors such as Huawei, Cambricon, and Moore Threads are rapidly covering this demand. Huang emphasized that conceding the Chinese market does not make strategic sense, stating, “Conceding an entire market the size of China probably does not make a lot of strategic sense.” He believes that while some sectors may be limited by US restrictions, others present opportunities for growth.
The shift in market dynamics shows how quickly competition can evolve. With Nvidia’s absence, Chinese technology companies are becoming increasingly self-sufficient in AI technologies despite limited access to Nvidia’s GPUs and other products.
Key statistics:
- Nvidia’s current market share in China: 0%
- Nvidia’s market share in 2024: 66%
- Projected future market share for Nvidia: 8%
- Domestic vendors expected to cover 80% of demand in China
Observers are watching closely as these developments unfold. The rise of local competitors could reshape the entire landscape of AI technology within China and beyond. As Huang put it, “The argument there is that across the five-layer cake, there’s one particular layer that is too important because in the others, China can get ahead.” This statement underscores a belief that innovation will continue unabated within China’s tech ecosystem.
