Jensen Huang: “China Will Win the AI Race”

According to Nvidia CEO Jensen Huang, China has the best long-term prospects in the global AI race. Low energy costs and more lenient regulations will make the difference.

A conversation with Nvidia’s top executive Jensen Huang is rarely dull. During an AI conference in London organized by the Financial Times, Huang did not hold back. Huang is convinced that China will win the global AI race. This contradicts the Trump administration, which earlier this year prematurely declared the United States the winner and would never place itself in the losing camp.

Western Cynicism

Huang does not make his prediction lightly. According to Huang, the Chinese government makes it easier for its technology companies than in the West. Western policy suffers too much from ‘cynicism’ instead of optimism. American companies face too many regulations, Huang believes.

Note that when Huang refers to ‘the West,’ he primarily means the United States and, to a lesser extent, the United Kingdom. The European Union, with the exception of the French Mistral, hardly participates on the global AI stage.

A difference in energy costs will also play to the advantage of Chinese companies in the long term, according to Huang. The Chinese government is taking measures to keep energy costs low for data centers, while in the United States, power capacity is already reaching its limits, and nuclear energy is being considered to keep data centers running.

Clashing Vision

Huang and Trump have been clashing for some time over the relationship between the United States and China. The government considers China its biggest competitor and does everything to keep the Chinese tech sector at a disadvantage. But that disadvantage is no longer as significant as Washington thinks, Huang warns. The breakthrough of DeepSeek earlier this year came as a serious wake-up call.

The Nvidia executive therefore advocates for easing trade restrictions with China. Huang primarily thinks of his own portfolio, as he would also like to sell his most powerful (and expensive) Blackwell chips in China. However, the U.S. government is not interested in this, and China also seems to be increasingly closing the door to Nvidia in favor of domestic GPUs.