Despite widespread fears that President-elect Donald Trump’s return to office will lead to tightened trade policies around A.I. chips to curb China’s tech advances, the CEO of Nvidia (NVDA), the largest manufacturer of A.I. chips, is still optimistic about the state of America’s relationship with China under the incoming administration. “Open research is one of the miracles of modern science and perhaps the ultimate form of global cooperation—one that we must protect,” Nvidia co-founder and CEO Jensen Huang on Saturday (Nov. 23) while accepting an honorary doctorate from the Hong Kong University of Science and Technology (HKUST). Huang, who lauded the region’s contributions towards technology like A.I., later told reporters that, while he doesn’t “know what’s going to happen with the new administration,” Nvidia will continue to balance policy and law compliance with innovative tech development.
Nvidia’s booming GPU business has made it one of the world’s most valuable public companies, with a market cap of $3.38 trillion. However, like other chipmakers, its footprint in China has been shrinking in recent years amid growing geopolitical tensions and tightened export policies. Nvidia’s sales in China accounted for around 15 percent of its total revenue in the quarter ended September, a drop from 26 percent two years ago.
In a continued effort under Trump’s first presidential term, the Biden administration in 2022 restricted Nvidia from selling its most advanced chips to China (including Hong Kong). Trump, who is poised to expand such measures, has also said he will enact tariffs in Taiwan, home to Nvidia’s largest supplier, Taiwan Semiconductor Manufacturing Company (TSMC).
While supporting measured China policies, Huang lauded China’s “significant contributions to open science research helping to advance A.I. worldwide.” Over the years, Nvidia has benefitted from its presence in areas like Hong Kong, Beijing and Shanghai, according to the CEO. “From the beginning, we’ve had the benefit and the great joy and privilege of watching the amazing tech industry form in China,” he said.
As Huang received his honorary doctorate from HKUST, he highlighted the fact that the school’s alumni have helped found more than 1,800 startups that are still in operation today. “I’m thrilled to see so much energy focused on advancing the science of A.I. as well as using A.I. to advance at HKUST and across all of China,” he said. Thanks to developments across the new technology, “the greatest challenges of our time—unimaginable challenges to overcome in the past—all of a sudden seem possible to tackle,” he added.
Earlier this month, Huang said that Nvidia will comply with whichever policies the Trump administration decides upon. “We’ll of course support the administration,” said Huang during an earnings call, adding Nvidia will also simultaneously continue to support its customers and compete in the marketplace.
