“They’re nanoseconds behind us” — NVIDIA’s CEO sounds alarm on China’s AI rise and questions US chip strategy

by

According to NVIDIA CEO Jensen Huang, the competition between the US and China in artificial intelligence might be more competitive than many people realize.

I was listening to the Bg2 podcast the other day (I read about it on Tom’s Hardware first!), and they had NVIDIA’s CEO, Jensen Huang, on as a guest. He was talking about how NVIDIA’s business is changing when it comes to AI development in China – it’s really interesting because NVIDIA makes most of the specialized graphics cards that power AI these days!

Huang described China as powerful, inventive, rapidly developing, and lacking in strict regulation. He then addressed and debunked common misconceptions about the country, which represents the biggest challenge to NVIDIA’s leadership in artificial intelligence.

People used to say China could never create its own AI chips, which seemed ridiculous. They also doubted China’s manufacturing abilities, but that’s actually one of their biggest strengths.

Perhaps most importantly, Huang challenges the idea that China lags significantly behind the US in the development of artificial intelligence.

They’re significantly behind – two or three years, at least. It’s like they’re barely keeping up. We need to focus on competing and staying ahead.

Jensen Huang, NVIDIA CEO

For 35 years, NVIDIA has been a key player in China’s technology sector, and its CEO, Huang, shares some thoughts on how quickly China has become competitive with the US. He points to China’s world-class science and engineering universities, as well as the country’s culture, which has fostered a highly skilled workforce.

Huang points out that people in China work incredibly long hours – often from 9 AM to 9 PM, six days a week – making them the most overworked in the world.

China, NVIDIA, and the US — the ever-changing AI landscape

NVIDIA hasn’t had an easy time of late getting its AI chips into China.

In April 2025, the Trump administration prohibited the company from selling its H20 AI GPUs to China. These GPUs were modified versions of US technology created to bypass existing trade restrictions.

As a tech enthusiast, I was really excited to hear the news back in July 2025! After a lot of pushing from NVIDIA’s Huang, they finally got the green light to sell their H20 GPUs in China again. It’s a big win for everyone who wants access to that kind of powerful tech.

Just weeks after restrictions were removed, strong demand initially suggested a shortage of H20 chips. However, Chinese officials raised security concerns and advised local companies against purchasing NVIDIA’s H20, which reduced the expected impact.

Even though China didn’t officially object, NVIDIA still had to get approval from the US government to export its products.

As an analyst, I found the August announcement regarding NVIDIA and AMD quite surprising. Essentially, the companies have agreed to a deal where 15% of their AI chip sales revenue in China will be directed back to the US government. It’s a really unusual step, and we’re still assessing the full implications.

During the announcement, President Trump strongly reiterated his belief that the H2O is not competitive.

The H20 model is outdated. I told them that if they wanted my approval to use it nationally, I would need a 20% share.

US President Donald Trump

Worries about security and the constant discussion around NVIDIA chips made for China have definitely complicated things.

Last September, I wrote about China’s decision to prevent major tech firms like ByteDance and Alibaba from purchasing or even testing NVIDIA’s RTX Pro 6000D AI GPU – a less powerful version of the chip made specifically for the Chinese market.

Following this, Chinese authorities stated they were looking into NVIDIA for potential antitrust issues stemming from its 2020 purchase of Mellanox, a chip design company.

Huawei’s three-year plan to best NVIDIA’s AI chips

Huawei, a Chinese tech company, is quickly becoming a major competitor to NVIDIA in the artificial intelligence chip market. They recently announced a plan to become the leading AI chip provider in China within three years, according to Bloomberg.

Huawei is developing a new generation of Ascend AI chips that will work together in a powerful system called a “SuperPod.” This design will connect up to 15,488 chips using a new technology called “UnifiedBus,” allowing them to function as a single, highly capable unit.

Huawei asserts its new technology is significantly faster – up to 62 times quicker – than NVIDIA’s upcoming NVLink144. While NVIDIA’s existing NVLink72 can connect a large number of GPUs and CPUs (72 Blackwell GPUs and 32 Grace CPUs), Huawei appears to be prioritizing sheer scale over subtle improvements to gain an advantage.

Huawei has created new chips specifically for Chinese AI technology, putting pressure on NVIDIA as it tries to regain its previously dominant 95% share of the market.

I’ve noticed NVIDIA’s CEO doesn’t seem worried about increasing AI competition from China – in fact, he almost appears to welcome it. It’s an interesting stance, seeing him encourage what many would consider rivals.

As a researcher observing the global landscape, it’s clear we’re in competition with China. And frankly, I completely understand their desire to see their own companies succeed – they absolutely *should* want that. I have no issue with them providing strong support to their businesses; it’s entirely their right and a natural part of national economic strategy.

Jensen Huang, NVIDIA CEO

During a recent interview, NVIDIA’s CEO, Huang, shared his concerns about existing global rules that limit the company’s ability to compete effectively. He explained that these regulations impact the entire tech industry.

We need to recognize this as a national treasure – it’s our most important industry. Why wouldn’t we let it compete and thrive? Allowing it to expand globally would mean the world would be built on American technology.

NVIDIA naturally benefits from having a strong relationship with China, and this isn’t the first time its CEO, Huang, has said so.

Currently, NVIDIA remains the dominant provider for AI companies in China, but it will be important to see how Huawei develops over the next three years.

Stay up-to-date with the latest news, insights, and features from Windows Central by following us on Google News!

Read More

2025-09-29 17:11