Nvidia CEO Jensen Huang expressed confidence that China has every chance of overtaking the US in the development of artificial intelligence. According to him, Beijing’s main advantages are the low cost of electricity and a lenient regulatory environment, which creates favorable conditions for technology companies.
This is reported by Business • Media
China’s Advantages and Criticism of Western Policies
Jensen Huang emphasized that China is gradually becoming a leader in the field of AI, while Western countries, particularly the US and the UK, face excessive bureaucracy and skepticism towards new technologies. He noted that “cynicism and caution” are hindering innovation development in the West, whereas China provides companies with more freedom to implement new developments.
“In China, energy is practically free,” Huang emphasized, explaining how subsidies for electricity for data processing centers allow local developers and chip manufacturers, including Huawei and Cambricon, to gain significant competitive advantages.
Additionally, he highlighted that the gap between American and Chinese artificial intelligence models is gradually narrowing.
US Restrictions and New Technological Solutions
The administration of US President Donald Trump maintained a ban on the sale of top Nvidia chips to China, including the latest Blackwell processors, citing national security concerns. Despite negotiations between Washington and Beijing, the American side did not agree to export the most advanced technologies; however, President Donald Trump allowed for the possibility of a deal regarding a “stripped-down version” of these processors.
Meanwhile, the Chinese government continues to actively support its own technology giants, such as ByteDance, Alibaba, and Tencent, especially after companies complained about rising costs due to restrictions on the import of American components.
In recent months, experts have noted the strengthening positions of Chinese artificial intelligence developers following the emergence of the DeepSeek model, which demonstrated functionality that competes with OpenAI and Anthropic systems.
At the same time, Jensen Huang urged the US government to reconsider its export policy regarding chips to avoid losing positions in the global technology market.
It is worth noting that Nvidia recently invested $100 billion in OpenAI to develop artificial intelligence infrastructure.