Nvidia CEO Warns U.S. Risks Losing AI Lead to China

Nvidia CEO Jensen Huang has warned that China is rapidly closing the gap with the United States in artificial intelligence, citing companies like Huawei as 'formidable' competitors making significant advances in AI chip development. U.S. export restrictions on advanced Nvidia GPUs have both hurt Nvidia's revenues and accelerated China's drive for self-sufficiency, with Chinese firms such as Huawei and DeepSeek now producing competitive AI chips and models. Huang argued that these restrictions may backfire, allowing Chinese manufacturers to fill the void left by Nvidia in the Chinese market and potentially threatening U.S. leadership in the sector. He emphasized the importance of robust domestic ecosystems and AI workforce training in maintaining U.S. dominance. The swift release of Huawei's Ascend 910C chip, built domestically and designed to rival Nvidia's top offerings, exemplifies China's rapid progress. Market reactions have already reflected these concerns, with Nvidia and other AI stocks experiencing volatility in response to Chinese advancements.