Nvidia’s Jensen Huang says China is gaining in AI, calls rival Huawei ‘formidable’

Read Time:2 Minute, 16 Second

Nvidia CEO Jensen Huang has warned that the gap between the US and China is narrowing in terms of the race for AI dominance.

Stating that China was not behind in AI, Huang said, “We are very close. Remember this is a long-term, infinite race.” He also described Chinese chipmaker and Nvidia rival Huawei as “one of the most formidable technology companies in the world,” according to a report by CNBC.

The AI industry leader reportedly spoke to reporters on the sidelines of a tech conference in Washington DC, US on Wednesday, April 30. Huang also urged the US government to introduce AI policies that accelerate the technology’s development.

Story continues below this ad

“This is an industry that we will have to compete for. With willpower and the resources of our country, I’m certain we can manufacture onshore,” Huang said.

These remarks come as Nvidia faces stumbling blocks in the US due to the Trump administration’s tariffs on China, and a pending rule introduced by former US President Joe Biden that restricts the sale of Nvidia’s advanced AI chips to many countries, including China and India.

In an effort to align with the Trump administration’s priorities, Nvidia announced it plans to invest $500 billion and manufacture AI chips in the US over the next five years.

However, US President Donald Trump announced restrictions on the sale of the chip giant’s H20 chips in China without a licence. Nvidia said that it would take an estimated hit of $5.5 billion in revenue due to the new restrictions on the H20 chips, which were developed in the first place to comply with earlier US export controls.

Story continues below this ad

Nvidia has argued that export controls on chips sales to China and other countries threaten the US’ dominant position in the AI race. The chipmaker also risks ceding ground to Chinese competitors like Huawei which is reportedly looking to develop an AI chip in-house.

“They’re [Huawei] incredible in computing and network technology, all these essential capabilities to advance AI. They have made enormous progress in the last several years,” Huang said on Wednesday.