Jensen Huang, CEO of Nvidia, softened his initial statements that China would win the artificial intelligence (AI) race, stating that the United States needs to “run ahead” to maintain global leadership.
The statements were made during an event organized by Financial Timeswhere Huang highlighted China’s advantages in energy costs and more flexible rules.
Initially, Huang claimed that China would win the AI race due to energy subsidies that make it cheaper for local companies to operate AI chips, even if they are less efficient than Nvidia’s.
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However, hours later, Nvidia released an official note in which Huang reinforces that the US is “nanoseconds ahead” and that it is vital that the country maintains its leadership by attracting developers globally.
Nvidia’s CEO has been pressuring the American government to ease restrictions on the export of its chips to China, seeking to maintain the world’s dependence on American technology.
After meetings with President Donald Trump, there was an agreement to allow limited sales, but the Chinese market remains largely closed due to a national security review.
Meanwhile, China incentivizes its technology companies with energy subsidies to address the higher costs of domestic semiconductors such as those produced by Huawei.
Experts suggest that the Chinese government may be using Nvidia’s market access as a bargaining chip in trade negotiations.
