Nvidia China market share to drastically decrease from 66% to 8%, analysts claim — export curbs and homegrown success to blame

Even though Nvidia’s AI GPUs and rack-scale solutions remain the most sought-after AI accelerators, curbs set on exports of Nvidia’s AI processors to China, first by the White House and then by Beijing, are having a drastic effect on the company’s presence in the People’s Republic. As a result, the company’s share in China could drop to just 8% in the coming years as domestic suppliers can satisfy around 80% of local demand, reports Nikkei, citing analysis from Bernstein.

“The new products meet the needs of domestic developers,” said Zhang Jianzhong, chief executive of Moore Threads, at a news conference while announcing the codenamed Huashan product, the company’s first GPU dedicated solely for the acceleration of AI workloads. “There will be no more need to wait for advanced products from overseas.”