Nvidia CEO Jensen Huang said that the company's market share of AI accelerators in China has now dropped to 0%. The drop is staggering, given that the company owned a lion's share of China's AI accelerator market just about two years ago.

"In China, we have now dropped to zero," said Jensen Huang in an interview with the Special Competitive Studies Project, a bipartisan initiative by American lawmakers aimed at ensuring long-term competitiveness of the U.S. "Conceding an entire market the size of China probably does not make a lot of strategic sense, so I think that has already largely backfired. Maybe it made sense at the time, but I think the policy really needs to be dynamic and needs to stay with the times. I think it would be fairly safe to say that having American chip companies and other companies in China makes a lot of sense."

It never made any sense...

China used Nvidia because that's what it had, but they have virtually no patent law and a giant workforce experienced at making chips

Any idiot could have predicted if you cut China off from Nvidia chips, they'd use their own, quickly surpass Nvidia, leaving Americans not being able to ripoff Chinese progress, unless we get our hands on the new Chinese chips if they're not direct ripoffs of what Nvidia is doing.

Even if they start that way, it's a fork. China will do things that Nvidia isn't.

Eventually they'll diverage enough to separate, unless Nvidia is copying China, which means they'll always be a lag.

American's corporate structure is what can't compete with China. Our corporations own our government, in China the government owns the corporations. And with a one party government that doesn't have to worry about elections, they can plan decades or longer at a time. Corps by definition only care one financial quarter at a time.

Both countries have rampant corruption and can do a lot better, but having a government in charge of corps will always work out better than corps running a government.

The problem is American corps would rather lose if the only way to win is give up their power in America. Hell, we already saw with Chinese EVs that corps can just make the government outlaw competitors so they don't have to compete and maintain profits.

If a government controlled corporations, theyd be ok with domestic companies being forced to adapt, or go out of business and be replaced by a new one. In America corporations can no longer fail, and that will eventually cause the country to fail if it's not fixed.