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Nvidia’s CEO, Jensen Huang, stated on Wednesday that China is not lagging in the race for artificial intelligence, labeling Huawei as one of the most formidable technology firms globally.
During a tech conference in Washington, D.C., Huang observed that China’s advancements in AI are closely trailing those of the U.S., noting that the gap is quite narrow.
“We are very close,” he mentioned, emphasizing the ongoing, long-term nature of this technological competition.
In recent years, Nvidia has solidified its role as a cornerstone of the global economy, supplying chips essential for many advanced AI systems. However, the company is currently navigating increasing obstacles in the U.S. market, including tariffs and upcoming regulations from the Biden administration that aim to limit exports of its cutting-edge AI chips to various countries.
Earlier this month, the Trump administration restricted the export of Nvidia’s H20 chips to China without a license. This technology, designed in compliance with previous U.S. export restrictions, is connected to the Hopper chips distributed elsewhere. Nvidia has projected a $5.5 billion financial impact due to this restriction.
Despite being on a U.S. trade blacklist, Huawei is reportedly developing its own AI chips aimed at Chinese markets.
“They are remarkable in both computing and network technology, which are essential for advancing AI,” Huang noted. “They’ve made substantial strides in recent years.”
Nvidia has argued that U.S. policies should prioritize enhancing competitiveness among American firms, warning that limiting chip sales to China and other nations could jeopardize U.S. technology leadership.
Huang reiterated the need for the U.S. government to embrace AI policies that foster innovation in the sector.
“This is a competitive industry,” Huang stated.
On Wednesday, Trump referred to Huang as “my friend Jensen,” praising the company’s announcement of a $500 billion investment in AI infrastructure within the United States over the next five years.
Huang expressed confidence that Nvidia will manage to produce its AI devices domestically, revealing that the company plans to assemble AI servers in collaboration with its partner Foxconn near Houston.
“With determination and our country’s resources, I am confident we can manufacture onshore,” Huang asserted.
Nvidia’s stock has faced a downturn this year, dropping over 20% amid a broader market decline, following a period in which it nearly tripled in value last year. On Wednesday, the share price fell by nearly 3%.
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