Nvidia Corp. CEO Jensen Huang said preventing Nvidia from selling artificial intelligence computer chips to China means foreign producers of AI technology are getting stronger.

Huang told Bloomberg that the Trump administration's block on selling AI technology to China means buyers there are turning to other suppliers, like Huawei Technologies. The increase in business for Huawei, which is blacklisted from sales in the U.S., gives it more money to put back into research and development, and the results are telling, he said.

Huang said AI advancements of Chinese manufacturers are growing daily to the point they are not far behind what Nvidia is producing. "You cannot underestimate the importance of the China market," said Huang. "This is the home of the world's largest population of AI researchers."

He said all AI researchers around the globe should be building a reliance on U.S.-made technology. And more business in the U.S. is less that can be used to create ethnological advancements in China.

And there's still the business model in general to consider, he said. "Irrespective of the near-term revenue success we have had, we can't ignore the fact that the Chinese market is very important."

Huang told investors during an earnings call on Wednesday that his company will forfeit about $8 billion in the current quarter due to the U.S. trade restrictions on China.

Nvidia reported it may offer a downgraded AI chip specifically for the Chinese market that would meet U.S. restrictions, but there is uncertainty over whether it will sell.