Jensen Huang, the CEO of NVIDIA, warned that China might surpass the U.S. in the artificial intelligence (AI) race due to reduced energy costs and loosened regulations. Speaking at the Financial Times’ ‘AI Future Summit’ in London, he emphasized that Western countries, including the U.S. and the UK, are hindered by cynicism and need more optimism. Huang expressed concern about potential new AI regulations being established in various U.S. states, which could result in 50 different regulatory frameworks.
He contrasted this with China’s advantage, as local technology firms can operate alternative AI chips to NVIDIA’s at a lower cost thanks to energy subsidies. Chinese regions like Gansu, Guizhou, and Inner Mongolia, where AI data centers are concentrated, provide subsidies that can reduce electricity costs by up to 50% for companies using domestic semiconductors.
Huang’s statements are seen as a more stern warning compared to the past. He had previously noted that U.S.’s latest AI models aren’t too far ahead of Chinese technology, and that market openness should be maintained. His comments followed after former President Donald Trump insisted that NVIDIA’s cutting-edge AI chips should be exclusive to the U.S.
Trump did not include the export of NVIDIA’s advanced AI to China as a topic in the U.S.-China summit discussions, despite Huang’s persistent lobbying efforts. However, it is believed that Huang will continue to push for the sale of NVIDIA’s advanced AI chips, known as Blackwell, to China ahead of Trump’s scheduled visit to the country next April. The market anticipates NVIDIA to maintain its efforts, pointing to Huang’s comment at a recent Washington event, where he highlighted China’s position as the globe’s second-largest economy and home to half of the world’s AI researchers.