Nvidia chief softens 'China will win AI race' tone

ISTANBUL

Nvidia CEO Jensen Huang appeared Thursday to soften his remarks made the previous day about "China is going to win the AI race."

Huang told Financial Times on Wednesday that the West, including the US and Britain, is being held back by “cynicism” and urged “more optimism” during the Financial Times’ Future of AI Summit.

He criticized new US state-level AI rules that could create “50 new regulations,” contrasting them with Chinese energy subsidies that make it cheaper for local companies to operate domestic alternatives to Nvidia’s AI chips, saying: “Power is free.”

But Nvidia issued a statement Thursday from the CEO on US social media company X.

“As I have long said, China is nanoseconds behind America in AI. It’s vital that America wins by racing ahead and winning developers worldwide,” Huang said in the statement.

He has long claimed that if developers continue to rely on Nvidia's top AI chips, the US can maintain its lead in the AI race. The CEO has used the claim to advocate against export limitations on his company's sales to China.

His efforts appeared to have paid off, as Washington agreed to loosen some of its chip restrictions after discussions with US President Donald Trump in July.

As part of the agreement, Nvidia and AMD, a rival AI chip manufacturer, agreed to give the US government 15% of their Chinese sales revenue from current AI processors designed for the market.

But Beijing has since barred Nvidia from the market while it reviews its processors for national security; according to Huang, and the US chip company’s market share has dropped to zero.

Huang reportedly voiced worries in the interview with the Financial Times that "cynicism" and overbearing regulations were holding back the West, notably the US, in contrast to China's energy subsidies, which are intended to reduce costs for local companies utilizing indigenous chips.