Jensen Huang Warns U.S. Risks Losing AI Race to China Due to Regulatory and Energy Advantages
Nvidia CEO Jensen Huang argues China is outpacing the U.S. in AI development, citing cheaper energy costs and streamlined regulations. The comments follow maintained U.S. export bans on advanced Nvidia chips after recent Trump-Xi talks. Huang criticized Western "cynicism" and fragmented state-level AI rules, contrasting them with China's unified subsidies for tech giants like ByteDance and Alibaba.
Chinese data centers benefit from government power subsidies, enabling large-scale AI operations at lower costs. Huawei and Cambricon chips, though less efficient than foreign alternatives, receive state support to offset higher electricity consumption. This strategic alignment gives Chinese firms a competitive edge in infrastructure scaling.