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Nvidia sounds the alarm: Chinese AI talent defecting to Huawei as U.S. chip curbs push them out the.


Date: 07-06-2025
Subject: Nvidia sounds the alarm: Chinese AI talent defecting to Huawei as U.S. chip curbs push them out the
Nvidia is sounding the alarm about the unintended impact of US export restrictions on sending chips to China, as the company's senior VP of research and chief scientist, Bill Dally, said that the chipmaker is now witnessing an increasing number of former Nvidia AI researchers joining Huawei, a move prompted primarily by the tightening export controls, as per a PC Gamer report.

AI Talent Spike in China
According to Dally's calculation, the number of AI researchers working in China has grown from a third of the world's total in 2019 to nearly half at present, reported PC Gamer, which cited a translation from the Taiwan Economic Daily report.

US Export Restrictions Fuel Domestic Innovation in China
The AI chipmaker's rationale is that without US restrictions, Huawei wouldn't be forced to focus so much on domestic AI solutions, but now it must do so to keep up, according to the PC Gamer report.

However, this is not the first time Nvidia is pointing out that the US export restrictions for China are harming the AI industry in America. Even during Computex last month, Nvidia CEO Jensen Huang said, "AI researchers are still doing AI research in China and if they don’t have enough Nvidia, they will use their own [chips]," and he also spoke regarding Huawei specifically, saying the company has become "quite formidable", reported PC Gamer.

Big Financial Stakes for Nvidia
While, it is not just the US national interest that has urged Nvidia to highlight all the possible negatives of export controls, as these restrictions have cost and will cost the chipmaker lots of money, according to the report.

Nvidia had revealed that after billions of dollars lost due to the restrictions of its H20 chips to China in Q1, it's expecting another $8 billion to be lost for the same reason in Q2, reported PC Gamer.

Huawei and SMIC Step Up
According to the report, Huawei's latest Ascend 910 and 920 chips, with the help of China's SMIC (Semiconductor Manufacturing International Corporation), would be a better option for Chinese AI companies than trying to get their hands on Nvidia chips, as per the report.

FAQs
Why is Nvidia concerned about its AI researchers joining Huawei?
Because it signals that export restrictions might be pushing top talent and innovation into China, instead of slowing its progress.

How much money has Nvidia lost from these restrictions?
Nvidia says it lost billions in Q1 and expects another $8 billion in losses in Q2 due to blocked chip sales to China.

Source Name : Economic Times

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