The recent remarks by Jensen Huang, CEO of Nvidia—the world's highest market-value company—have caused a significant stir in the tech world when he candidly stated that "China is going to win the AI race."
Amid rising technological nationalism in the US and policies limiting exports of advanced chips to China, Huang chose to voice an opinion many might see as contrary to the trend. Yet, from another perspective, it reflects the systemic view of a leader who sees AI competition not just as a national matter but as a global industry structure. This discussion took place at the Future of AI Summit hosted by the Financial Times.
He reasoned that China has several advantages, including lower energy costs, more relaxed regulations, and strong government support—especially policies subsidizing energy for data centers, which reduce costs for Chinese tech giants like ByteDance, Alibaba, and Tencent. Meanwhile, the US faces pessimism amid over 50 new complex regulations that hinder the domestic AI industry's growth, which he views as stifling innovation.
As the leader of a company built fully on US technology, Huang emphasized that he "wants the US to win" and that the US still can prevail in the AI race if developers worldwide—including the vast number in China—are involved. However, his warning is clear: the US cannot win by excluding half of global innovation.
He explained that cutting China out equates to losing connections to one of the world's largest developer communities and markets. Policies causing the US to lose half the world’s AI developers are counterproductive in the long run and will ultimately harm us. The sustainable path for the US to win lies in integrating China into the American tech ecosystem.
However, President Donald Trump continues to pursue the policy "American chips stay in America," declaring that China will not be allowed access to Nvidia’s latest AI chip, Blackwell. Reports also state that the White House has informed other federal agencies not to permit Nvidia to sell downgraded AI chips to China, according to The Information on Thursday, citing three close sources.
The report states Nvidia has already sent samples of this chip, called B30A, to several Chinese customers. This chip can be used to train large language models, a capability highly desired by many Chinese tech firms. The Information further reports that Nvidia redesigned the B30A chip again, hoping the US government will reconsider its stance.
Meanwhile, Nvidia continues facing regulatory pressure in China. Huang acknowledged that the Chinese government blocks the company’s access to the domestic market. Additionally, China has introduced new rules requiring any government-supported data center projects to use only domestically developed chips. Data centers already less than 30% completed must remove all foreign-installed chips or cancel purchase plans, while more advanced projects are reviewed on a case-by-case basis.
This new approach effectively bars Nvidia and its AI chips from China's vast data center market. Although some Nvidia chips, restricted by US export controls, can still be obtained in China through unofficial or gray market channels.
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Source information Financial Times , Reuters
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