Nvidia CEO Jensen Huang has softened his earlier assertion that China will win the AI race, emphasizing the need for the U.S. to maintain its technological edge.
Nvidia CEO Jensen Huang appears to be backtracking on his previous comments regarding China’s position in the artificial intelligence (AI) race. In a recent interview with the Financial Times, Huang stated, “China is going to win the AI race.” However, shortly after this statement, Nvidia released a more tempered response from Huang on its official X account.
In the follow-up statement, Huang clarified, “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.” This shift in tone highlights the complexities surrounding the competitive landscape of AI technology.
During his interview with the Financial Times, Huang expressed concerns that the West, particularly the United States, is being hindered by “cynicism” and stringent regulations. He contrasted this with China’s approach, which includes energy subsidies aimed at reducing costs for local developers utilizing domestic chips.
Nvidia’s operations in China have faced significant challenges due to U.S. export-control regulations. In April 2025, the company announced that its H20 AI accelerator, intended for the Chinese market, would require a U.S. export license. This decision led to an estimated $5.5 billion in charges related to canceled orders, excess inventory, and purchase commitments. For the quarter ending April 27, 2025, Nvidia reported sales in China of approximately $4.6 billion, accounting for about 12 to 13 percent of its overall revenue.
By mid-2025, Nvidia indicated it would exclude China from its forward revenue and profit forecasts, reflecting the ongoing regulatory uncertainty and licensing limitations. Although export licenses were eventually granted under specific conditions, the company had not resumed shipments of H20 chips to China as of that time. The situation remains fraught with geopolitical and regulatory risks, leading Nvidia to treat China, despite its substantial market potential—estimated at around $50 billion in AI and data-center demand—as a constrained opportunity in its near-term strategy.
Huang has consistently maintained that the U.S. can remain at the forefront of the AI race by ensuring developers continue to rely on Nvidia’s leading AI chips. This argument has been part of his lobbying efforts against export restrictions affecting the company’s sales to China.
Nvidia’s experiences in China during 2025 illustrate the complexities of operating in high-stakes global AI markets, where technological leadership, regulatory policy, and geopolitical tensions intersect. Success in these markets hinges on strategic innovation and agility, as projected financial impacts and market potential are inherently uncertain.
The company’s approach underscores the importance of maintaining a long-term technological advantage through developer ecosystems, research, and innovation. This strategy can prove more critical than immediate market access, particularly in regions where regulations can sharply limit operations.
Even leading technology firms face uncertainty while navigating export controls, licensing requirements, and evolving policy landscapes. This reality highlights the broader fragility of global supply chains in advanced AI sectors.
Moreover, interpretations of the U.S.-China AI race often reflect corporate positioning rather than definitive predictions. This underscores the necessity of carefully framing public messaging while pursuing competitive advantages. Nvidia’s cautious strategy illustrates that high-potential markets can present both opportunities and risks.
To sustain innovation leadership, protect intellectual property, and ensure regulatory compliance will be essential for shaping the long-term trajectory of global AI competition. Overall, the events of 2025 demonstrate that success in AI is determined not only by market access but also by the ability to innovate strategically amid uncertainty.
Source: Original article