Nvidia CEO Jensen Huang says rival AI company is “not sitting still” following AI chip ban
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The war between Nvidia and AMD has been raging on for decades now, and while Nvidia might be focusing a little less on the gaming market (don’t worry, it still loves GeForce), much to the distress of gamers, and focusing more on AI and data centers, recent global changes might put Team Green defending itself on two fronts.
Nvidia's AI rivals are formidable
In an interview with Bloomberg's Ed Ludlow, Nvidia's Chief Executive Officer, Jensen Huang, talked about the impact of the global trading decisions and tariffs have had on the landscape. In a recently released report by Team Green, they mentioned a loss of $4.5 billion in the first quarter and expect it to increase to $8 billion by Q2.
This is a huge blow to the company, and the ban on exports of its H20 AI chips for the Chinese market isn't just a financial loss but strategically puts Nvidia fighting an uphill battle. Chinese AI companies have risen to the challenge to fill the void left by Nvidia in that market and have capitalized on rapidly increasing and evolving their tech.
Jensen Huang went on to say that one of the blacklisted Chinese companies, Huawei, has become “a formidable technology company and they’re not sitting still”. The impact of this statement will surely be felt throughout the AI market as the CEO of one of the biggest names admitting that their company has some real challenges means that other businesses will also explore other avenues to invest in.
“Huawei, as you know, is a formidable technology company and they’re not sitting still. They look for ways to compete.”
Nvidia CEO, Jensen Huang
Another example that we saw of businesses changing their strategy and investment planning was when DeepSeek launched. Companies that were investing millions of dollars in Nvidia's GPUs started questioning whether they needed to do that, as DeepSeek could match their most powerful models.
However, it is never quite as simple as it seems, and there are multiple layers of intricacies to understand. What we do know is that the future might be difficult for Nvidia on the AI front, but certainly interesting.
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