Nvidia’s market share for AI accelerators in China has dropped to 0% due to strict US export controls on AI-related hardware sales. The company previously held a significant 66% share in 2024.
CEO Jensen Huang confirmed the decline, stating, “In China, we have now dropped to zero.” He emphasized that conceding such a substantial market does not make strategic sense for Nvidia.
As of midday, Nvidia’s direct sales to Chinese companies have ceased. This shift has allowed domestic technologies, including those from Huawei, Cambricon, Moore Threads, and MetaX, to fill the gap left by Nvidia’s absence.
Analysts project that Nvidia’s market share could drop further to about 8% in the coming years if current trends continue. Meanwhile, Chinese vendors are expected to cover approximately 80% of the demand for AI accelerators within the country.
Huang noted that while the US export controls create challenges, there is a layer within the AI sector that remains crucial. He remarked, “The argument there is that across the five-layer cake, there’s one particular layer that is too important because in the others, China can get ahead.”
This development highlights a significant shift in AI market dynamics. China is rapidly becoming self-sufficient in AI technologies despite limited access to Nvidia’s products.
Observers are closely watching how these changes will impact Nvidia’s long-term strategy and its ability to regain foothold in one of the largest markets for AI technologies.
