Nvidia's Huang Renxun: Huawei's chips have caught up with NVIDIA H20, and Musk's Optimus robot has opened up a trillion-dollar business opportunity

NVIDIA's CEO Jensen Huang admitted in an interview on 5/29 that due to US export restrictions, NVIDIA suffered a revenue loss of $8 billion in the Chinese market. However, driven by explosive growth in AI inference demand, Blackwell chip sales, and supply chain upgrades, they successfully made up for the loss. While supporting Trump's reindustrialization policy, he also called for the removal of chip export restrictions. Additionally, he discussed close collaboration with Elon Musk in autonomous systems and humanoid robots, potentially opening up a trillion-dollar business opportunity. Notably, Huang also revealed for the first time that Huawei's chip performance is almost on par with H20, and he plans to visit Europe to promote AI infrastructure cooperation and localization.

Key Points

1. NVIDIA's revenue loss of $8 billion in the Chinese market is offset by strong AI inference demand, driving Blackwell chip sales and supply chain upgrades.

2. Huawei's chip performance is nearly on par with H200, as Huang candidly admits.

3. Close collaboration with Musk in developing Optimus humanoid robots is expected to create a trillion-dollar business opportunity.

NVIDIA's Revenue Loss of $8 Billion in China Market, AI Inference Fills the Gap

Huang admitted that in the Q2 2025 fiscal quarter, NVIDIA suffered an $8 billion revenue loss due to US export restrictions to China. Fortunately, the explosive growth of AI inference models and generative AI services like Gemini drove Blackwell series chip sales, and the new chip architecture Building 72 helped the supply chain compensate for the losses.

Huawei Chip Performance Nearly Matches H20, Pressuring US Companies

Previously, NVIDIA designed a downgraded H20 chip to export to Chinese enterprises in compliance with US export restrictions. During the interview, Huang emphasized that the H20's performance could not be further reduced. He also candidly admitted that Huawei's chip performance might be close to H20.

Huang added that US export restrictions have forced customers like Alibaba and Baidu to turn to Huawei, rapidly growing China's domestic supply chain. He acknowledged that this has created significant pressure for US tech companies.

Supporting Trump's Tariff Policy, Hoping to Remove AI Chip Export Restrictions

When asked about Trump's policies, Huang stated that he supports Trump's use of tariffs to promote reindustrialization and attract foreign investment into the US, considering it strategically valuable. However, he also hopes to revoke the AI diffusion rule to accelerate global use of US AI technology, making the US a global AI development leader.

Visa Restrictions Impact Talent Flow, Huang Reaffirms US Flexibility

Regarding the US's strict review and potential revocation of some Chinese students' visas, Huang responded:

"As an immigrant myself, the US needs the smartest people from around the world to develop here."

He urged the US government to remain flexible and allow potential tech talent to continue entering the country.

Musk is a Key Partner, Optimus Robot Opens Trillion-Dollar Business Opportunity

When asked if Tesla is one of NVIDIA's largest customers, Huang candidly stated:

"Musk is an important partner for NVIDIA. From autonomous vehicles to Grok and Optimus robots, NVIDIA will continue to be involved."

He also previewed that Optimus is likely to be one of the first robots that can be widely deployed in the current world, and the first robot with the potential for high-volume production and technological advancement, believing this could become a trillion-dollar business opportunity.

European AI Infrastructure Expands Comprehensively, Jensen Huang to Meet with Heads of European Countries

Finally, Jensen Huang revealed that he is about to meet with heads of state from France, the United Kingdom, Germany, and Belgium, mainly to discuss how to accelerate the expansion of national AI infrastructure. He stated:

"Every country has realized that AI is like electricity and the internet, a fundamental infrastructure for future society."

(NVIDIA's Financial Report Exceeds Expectations, Bitcoin at 107K, Unresolved Contracts Not at New High)

After NVIDIA's latest financial report, market focus was not only on the report itself but also on the substantial impact of US-China technology policies on its operations. Although the second quarter revenue still reached around $45 billion (plus or minus 2%), approximately $8 billion in revenue related to the Chinese market and H20 chips was ultimately unsold. The outside world is concerned: How will NVIDIA successfully fill the gap from other international markets or product lines in the face of policy and geopolitical pressures, and even maintain a strong growth momentum?

NVIDIA CEO Jensen Huang accepted a Bloomberg interview, providing answers to key questions about competition in the Chinese market, Huawei's technological gap, AI chip export controls, collaboration with Musk, US policies on immigration and technology exports, and the company's expansion plans in Europe. He succinctly described NVIDIA's strategy for addressing various challenges while revealing the company's global AI strategic layout.