Nvidia’s CEO Jensen Huang

Washington’s chip controls We are denying North -American companies like Nvidia Access to a huge, growing AI chip market in China, said CEO Jensen Huang on Tuesday take A success of $ 5.5 billion of sales blocked in the second largest economy in the world.

“China is a very large market. It will probably be a $ 50 billion market in the next couple or three interview with CNBC. Added that access to the Chinese AI market would create jobs in the United States

Huang has been talking positively about China and its AI sector, calling it a “key market” for Nvidia in mid-April during a surprise visit to the country. He also warned that closing the country could harm both the United States and Nvidia interests encouraging “strategic competitors” as Huawei.

Nvidia recently revealed that $ 5.5 billion would be needed after the United States decided that the chip maker would sell their H20 chip in China without a license. (Nvidia designed the H20 chip to fulfill the previous export controls).

Tuesday, AMD revealed that a need to be $ 1.5 billion affect income of the updated controls of the United States. Like nvidia, AMD also makes graphic processing units (GPU) that are key to feeding AI applications.

Washington first imposed large export controls in China in October 2022 and has constantly closed gaps in its sanctions regime in later years. Rules go beyond Nvidia and AMD for too affect The manufacturers who produce the tools used to make chips.

It may be that North -American companies like Nvidia want to maintain access to the large Chinese market, but they may also be concerned about competition from local players like Huawei. Huang has previously warned that China is not far behind the United States in AI competition.

A report From the Center for Strategic and International Studies, a Think-Tank based on Washington DC, published in March, said that China had “reduced” the AI ​​gap with the United States and that it was not realistic to wait for more than two years leadership.

China has spent years invest Better in your local semiconductor industry to try to unleash chips and chip manufacturing equipment. Beijing also encourages companies to use made of chips in the country when possible.

During the weekend, the Financial time informed That Huawei be building a production line for advanced chips, part of a wider effort to move the entire AI chip chain in China. Huawei is too report He prepared to test his latest Series Ascend Chip, a competitor for Nvidia products.

This story originally presented to Fortune.com

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