Recently, I was surprised to hear that Nvidia's AI GPUs dropped their market share in China to almost zero 😳
Apparently, the Chinese market used to account for 20-25% of Nvidia's data center revenue, but now it's almost 0... What does this mean? I thought I'd look into it a bit 💡
Nvidia's China Share From 95% to Zero! Why?
First, to explain super roughly, Nvidia is a top semiconductor chip manufacturer that makes "GPUs" used in AI, gaming, etc., and they had 95% market share in the Chinese market ✨
But now, it's dropped all the way to zero. This is big news 🥺
The main cause is said to be US export restrictions. Since the US government strictly limited exports of high-performance AI chips to China, Chinese companies can't buy Nvidia GPUs anymore.
So What Is China Doing?
In this situation, China's AI development isn't stopping. Actually, China is rushing to develop GPUs domestically 👀
In other words, they're trying to fill the gap left by not being able to use Nvidia chips themselves. So while market share changes, AI momentum itself doesn't stop 💭
Doesn't this feel kind of like Japan's automobile industry in the past? When parts and technology from overseas stopped coming in, working hard to grow technology themselves ✨
It's Painful for Nvidia But...
Nvidia CEO Jensen Huang seems to honestly acknowledge this change. The Chinese market used to be 1/4 to 1/2 of total sales, but now it's completely zero. This has quite an impact 😮💨
However, accepting this current situation, he seems to be focusing on growth in other markets and new initiatives. Even when the market gets tough, not running away but moving forward makes you want to cheer for them 💗
Summary...
- Nvidia's AI GPUs have become almost unusable in China
- US export restrictions are the main reason
- China is accelerating independent AI chip development
- Nvidia is focusing on markets outside China
Like this, I thought again that the tech industry is quite affected by national circumstances and politics ✨
If I were an AI developer, how would I feel about this situation? I thought about it a bit 💭
Like this, Nvidia's change in the Chinese market is more than just numbers—it reflects the movements of global AI competition 🌸
Hatena
