Nvidia CEO: US and China closely matched in AI chip race

Nvidia CEO Jensen Huang made significant remarks during a technical conference in Washington D.C., emphasizing China's strong position in the artificial intelligence (AI) race. He praised Huawei, describing it as "one of the most formidable technology companies in the world." Huang stated that the gap between China and the U.S. in AI is minimal, with both nations essentially neck-and-neck. "This is a long-term, endless competition," he noted. Nvidia has gained prominence globally for supplying advanced AI chips, which are crucial for training and running complex AI models. These chips are expensive and in high demand, making Nvidia a key player in the AI ecosystem. However, the company faces mounting challenges in the U.S. due to tariffs and impending restrictions on exporting its highest-end AI chips to certain countries, including China. Earlier this month, the Trump administration imposed a restriction on Nvidia's H20 chip sales to China, requiring special licenses. This move could cost Nvidia about $5.5 billion, highlighting the severe impact of geopolitical tensions on the tech industry. Huawei, a major Chinese tech conglomerate, has been making significant strides in AI chip development despite being on the U.S. trade blacklist. Huang acknowledged Huawei's exceptional capabilities in computing, network technology, and software, praising their rapid advancements in recent years. "They have made enormous progress," he said, underlining the growing competition from Chinese firms. To maintain its competitive edge, Nvidia has been advocating for U.S. policies that enhance American companies' global market positions rather than hindering them through export controls. Huang emphasized the importance of accelerating technological advancement, stating, "We need a policy that focuses on how to accelerate the progress of technology." In a move to bolster its domestic production, Nvidia recently announced a partnership with manufacturing giant Foxconn to assemble AI servers near Houston. This strategic alliance demonstrates Nvidia's commitment to navigating the challenging regulatory landscape while keeping innovation at the forefront. Despite Nvidia's stock price tripling over the past year, it has dropped by more than 20% since the beginning of this year, aligning with broader market trends. Following Huang's comments, Nvidia's stock slid nearly 3% in the first trading day after his interview. During the same event, President Trump warmly referred to Huang as "my friend Jensen" and applauded Nvidia's plan to invest $500 billion in the U.S. over the next five years to build AI infrastructure. This announcement underscores the U.S. government's commitment to supporting technological leadership domestically. The energy supply is another critical factor in the growth of emerging industries, according to Huang. He highlighted the need for a progressive and industry-focused energy policy to support the development of AI systems and infrastructure. "To make this industry thrive, we need not only to build these systems but also to have a forward-thinking energy policy," he explained, expressing gratitude for the president's full support. Industry experts view Huang's comments as a reflection of the intense tech rivalry between the U.S. and China, particularly in the AI chip sector. Nvidia, as a leading chip manufacturer, closely monitors how policy changes can affect market dynamics. The CEO's call for supportive government policies demonstrates Nvidia's desire to balance domestic investment with international competitiveness. Nvidia, founded in 1993 and headquartered in Santa Clara, California, is renowned for its graphics processing units (GPUs) and AI chips. With the rapid advancement of AI technology, Nvidia has solidified its position as a leader in high-performance computing and data centers. However, the rise of Chinese competitors like Huawei is increasingly testing Nvidia's dominance. In summary, Jensen Huang's statements highlight the parity and intense competition in the global AI chip market, with both the U.S. and China vying for supremacy. Nvidia's advocacy for policies that foster technological progress and its collaboration with Foxconn illustrate its strategic approach to maintaining leadership amid regulatory and geopolitical uncertainties. The company's significant investments and the U.S. government's backing further underscore the stakes involved in this ongoing technological arms race.