TLDR
- Nvidia CEO Jensen Huang told the Financial Times that China will win the AI race before softening his remarks later that day
- Huang highlighted China’s cheaper energy and fewer regulations as reasons it could surpass the United States in AI development
- China has frozen Nvidia out of its market through a national security review, reducing the company’s market share to zero
- Huang has pushed back against U.S. chip export restrictions, saying America needs China’s developer community to maintain its lead
- President Trump wants Nvidia’s most advanced Blackwell chips reserved exclusively for U.S. customers
Nvidia CEO Jensen Huang created headlines Wednesday after telling the Financial Times that China will win the artificial intelligence race. By evening, he’d changed his tune.
Speaking at the FT’s Future of AI Summit, Huang warned China would overtake America in AI development. He pointed to cheaper energy and lighter regulations as China’s competitive edge over Western nations.
The statement marked Huang’s most direct warning about America’s position in the global AI competition. But it didn’t last.
Within hours, Nvidia released a statement from Huang on X. “As I have long said, China is nanoseconds behind America in AI,” he wrote in the walkback.
He continued: “It’s vital that America wins by racing ahead and winning developers worldwide.” The quick reversal highlighted the sensitivity around U.S.-China tech competition.
Export Restrictions Battle
Huang has consistently pushed against U.S. export restrictions on chip sales to China. His main argument centers on keeping global developers dependent on Nvidia technology.
At a Washington developers conference last month, Huang said: “We want America to win this AI race. No doubt about that.”
He also emphasized the importance of China’s developer community. “A policy that causes America to lose half of the world’s AI developers is not beneficial in the long term,” Huang stated.
China currently blocks Nvidia from its market during an ongoing national security review. Huang has confirmed the company’s Chinese market share sits at zero.
The freeze creates challenges for Nvidia’s expansion plans. China offers one of the world’s largest potential markets for AI processors.
Chinese officials are directing domestic tech companies toward homegrown AI chip alternatives. Whether China will ever reopen its market to Nvidia remains uncertain.
Industry experts suggest Beijing may be using market access as a bargaining chip in trade negotiations. Others believe China seeks broader access to advanced U.S. semiconductor technology.
Trump’s Chip Policy
President Trump stated Sunday that Nvidia’s cutting-edge Blackwell chips should remain available only to American buyers. He said Washington would permit some China-Nvidia engagement, but not involving “the most advanced” semiconductors.
After July meetings with Trump, restrictions appeared to be easing. Washington agreed to modify some export rules.
That plan would have required Nvidia and AMD to pay 15% of Chinese revenues to the U.S. government. China’s subsequent security review blocked those sales before they started.
Last month’s trade discussions between Trump and Chinese President Xi Jinping produced no progress on chip policy. The Wall Street Journal reported Trump wanted to discuss Huang’s request for new China sales permissions.
Senior officials rejected the proposal, according to the Journal’s reporting. Huang was traveling in South Korea during those negotiations.
Western Regulation Concerns
During his FT interview, Huang criticized Western regulatory approaches. He described excessive rules and “cynicism” holding back Western AI development.
China provides energy subsidies that reduce costs for developers using domestic chips. Huang contrasted this with what he sees as overregulation in Western markets.
Nvidia hasn’t requested U.S. export licenses for China chip sales. Huang blamed Beijing’s position toward the company for this decision.
With Chinese market access blocked indefinitely, Huang seems to be refocusing on other barriers to growth. His comments about energy pricing and regulatory burdens point to concerns beyond trade restrictions.
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