Nvidia CEO Jensen Huang on Wednesday clarified his remarks warning that China would “win the AI race,” suggesting Beijing is close behind the U.S. on artificial intelligence technology and that it is “vital” for Washington to pull ahead.
In an interview with the Financial Times, Huang offered a stark assessment: “China is going to win the AI race.” He pointed to state AI regulations in the U.S. and lower energy costs in China as key factors.
The Nvidia chief later Wednesday issued another statement, seeking to explain his earlier comment.
“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,” he said in the statement, posted to social platform X.
Nvidia saw its stock dip Wednesday afternoon. However, the chipmaker is still the world’s most valuable company. It became the first firm to reach a market capitalization of $5 trillion last week.
The company’s rapid rise has been closely tied to the AI boom, as its chips remain central to the technology's development. As both the U.S. and China race to develop the emerging tech, Nvidia has found itself in a complicated position, seeking to sell to both superpowers.
It scored a major win earlier this year when the Trump administration reversed course and allowed the company to sell its H20 chips to China in exchange for a 15 percent cut of revenue. However, Beijing has reportedly since barred major domestic tech firms from purchasing those chips, as it seeks to develop its own chipmaking capabilities.
Amid the ever-fluctuating trade relationship between the U.S. and China, Huang has increasingly embraced President Trump.
At the company's first conference in Washington last week, the CEO touted Trump's energy and manufacturing policies and borrowed his signature phrase in thanking the crowd for “making America great again.”
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