Nvidia CEO Jensen Huang believes China is poised to overtake the United States in the global race for artificial intelligence dominance — thanks to cheap energy and lenient regulations.
In an interview with the Financial Times, Huang argued that China’s approach to AI development offers a more favorable environment for innovation compared to the “cynicism and overregulation” of Western nations. “Skepticism and bureaucracy are slowing down progress in the U.S. and the U.K.,” he said, adding that China’s government has created a friendlier ecosystem for tech companies to thrive.
Huang’s remarks came shortly after President Donald Trump’s administration decided to maintain a ban on exporting Nvidia’s advanced AI chips to China. Despite recent diplomatic talks, Washington refused to authorize shipments of the new Blackwell processors, citing national security concerns.
According to Huang, China’s government subsidizes energy for data centers, dramatically reducing operational costs and giving domestic firms like Huawei and Cambricon a competitive edge. “In China, energy is practically free,” he noted, emphasizing that this factor alone could shift the balance of AI innovation eastward.
Earlier reports indicated that Beijing has ramped up support for major tech firms including ByteDance, Alibaba, and Tencent after their complaints about rising costs due to U.S. component import restrictions.
Huang also pointed out that the performance gap between American and Chinese AI models is narrowing fast. He urged the White House to reconsider its export policies before the U.S. loses technological influence on the global stage.
Meanwhile, President Trump reiterated that China would not gain access to Nvidia’s most advanced chips, though he left the door open for a potential deal involving a “limited version” of the Blackwell processors.
Concerns in Washington deepened following the debut of DeepSeek, a Chinese AI system that analysts say now rivals models from OpenAI and Anthropic.
Notably, Nvidia has recently pledged $100 billion in investment toward OpenAI infrastructure to strengthen global AI development and maintain leadership in the industry.
