"Huang must be concerned that the United States will not allow Nvidia to sell its high-end chips to China. This has caused pushback by China, which says it can build its own world-class chips. That hurts Nvidia sales. The other reason Huang may have made the statement is that he believes it. Either way, his comment was unequivocal. "China is going to win the AI race," he told the Financial Times."
"Huang could be correct for several reasons. The first is that China appears to run top-tier AI software with chips that are not as powerful as Nvidia's. This allows Chinese programmers to build AI software inexpensively. The government has given financial incentives to use chips made by tech firms in the country. In January, DeepSeek said it spent only $5.6 million to build its public-facing software. U.S. companies spend tens or even hundreds of millions of dollars to produce equivalent products."
Jensen Huang stated that China will win the artificial intelligence race and the company only slightly walked back the comment. One reason for the claim is concern that the United States may restrict Nvidia from selling high-end chips to China, prompting Chinese pushback and claims of domestic chip capability that hurt Nvidia sales. Another reason is a genuine belief in China's advantage. China runs top-tier AI software on less-powerful chips, benefits from government incentives for domestic chips, and achieves much lower development costs, while the U.S. faces developer restrictions and potential brain drain. This dynamic threatens major U.S. AI firms.
Read at 24/7 Wall St.
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