The now-scrapped rule would have limited the number of advanced artificial intelligence chips NVIDIA could sell to certain countries.

Nvidia CEO Jensen Huang reportedly called Washington’s export curbs on the sale of AI chips to China a “failure” that would drive Chinese rivals to speed up developing their own semiconductors.

U.S. export controls on artificial intelligence chips to China were "a failure" as they have cost American companies billions of dollars in lost sales, Nvidia Chief Executive Jensen Huang said on Wednesday.