Hajra Naz
Nvidia CEO Jensen Huang has issued a stark warning — China may soon surpass the U.S. in artificial intelligence. Speaking at the Financial Times’ Future of AI Summit in London, Huang said China’s cheaper power and fewer AI regulations give it a major edge in the global AI race.
China’s Growing AI Advantage
Huang said Beijing’s subsidies on energy and rapid regulatory approvals make AI development far more affordable. In contrast, the U.S. and U.K. face growing “cynicism” and overregulation, slowing innovation.
According to Huang, Chinese tech giants like ByteDance, Alibaba, and Tencent benefit from subsidized energy and domestic AI chips, allowing them to run large-scale AI systems without Nvidia’s technology. He warned that such conditions could allow China to dominate AI infrastructure in the coming years.
Read More: Trump Says China and Other Nations Can’t Access Nvidia’s Top AI Chips
U.S. Restrictions on AI Chips
Huang’s comments come just days after Donald Trump reaffirmed that the U.S. will block China from accessing Nvidia’s most advanced AI chips, including the new Blackwell GPU.
“We will not let anybody have them other than the United States,” Trump said in an interview on October 31.
To comply with U.S. export rules, Nvidia and AMD agreed to pay a 15% revenue tax on Chinese AI chip sales, though full regulatory approval is still pending.
China Responds With a Ban on Foreign AI Chips
In a sharp move, Beijing has banned foreign-made AI chips in state-funded data centers. The new rule requires all government-backed facilities still under 30% construction to replace or avoid foreign chips, including Nvidia’s.
China has also increased subsidies for domestic chipmakers, cutting data center energy costs by up to 50% to strengthen its AI ecosystem and boost global competitiveness.
This decision further escalates the U.S.-China tech war, highlighting how AI and semiconductor policy have become strategic weapons in the fight for technological dominance.
Huang’s Frustration With U.S. AI Policy
At the summit, Huang expressed concern about the U.S.’s fragmented AI regulatory landscape. He said individual states are now proposing “50 different AI laws,” which could stifle innovation and slow down national progress.
“China is going to win the AI race,” Huang repeated, adding that the U.S. needs to rethink its energy and innovation policies to compete globally.
China’s AI Powerhouse Status
Huang emphasized that China isn’t just a big market — it’s a global research hub. “About 50% of the world’s AI researchers are in China,” he noted, adding that many leading open-source AI models are being built there.
At past conferences, Huang said China was “right behind” the U.S. in AI model development, but warned that this is an “infinite race” — one that America could still lose if it slows down.
Nvidia’s Position and the Global AI Market
Nvidia, currently worth over $3 trillion, remains at the heart of the AI revolution. Huang believes the U.S. can still lead if it expands energy production, builds more data centers, and encourages AI developers to stay domestic.
He hopes to see the U.S. capture 80% of the global AI market but admits that current policies could jeopardize that goal. Nvidia’s shares dipped 1.75% on Wednesday but rose 0.56% in after-hours trading.
The Bigger Picture
The AI arms race between the U.S. and China is now defining the future of global tech dominance. From chip exports to data center policy, both nations are racing to control the foundation of the next industrial revolution — artificial intelligence.
FAQs
1. Why does Jensen Huang believe China could win the AI race?
Huang cites cheap energy, government subsidies, and relaxed AI regulations as key reasons China could surpass the U.S. in AI development.
2. How is the U.S. responding to China’s AI advancements?
The U.S. has banned exports of Nvidia’s most advanced AI chips to China and is introducing new regulations to secure American tech leadership.
3. What role do companies like Alibaba and ByteDance play?
Chinese giants like Alibaba, Tencent, and ByteDance are major players in AI innovation, benefiting from domestic chip production and energy subsidies.
4. What impact does this have on Nvidia?
Nvidia faces regulatory hurdles and lost revenue from China, but continues to dominate the global AI chip market and push for U.S. policy reforms.
5. What’s next for the AI race between the U.S. and China?
Experts predict the AI race will intensify, with both nations investing heavily in chips, data centers, and quantum computing to maintain an edge.
