Nvidia CEO Jensen Huang walked back his warning that China would win the AI race. According to The Hill, he issued a new statement Wednesday saying China trails America by nanoseconds in artificial intelligence. He stressed that the US must race ahead and win developers worldwide.
Financial Times Interview Sparks Reaction
Huang spoke to the Financial Times earlier on Wednesday. He said China would win the AI race. He pointed to state AI rules in the US and lower energy costs in China as key factors. The remarks sent Nvidia stock down Wednesday afternoon.
Hours later, Huang posted a clarification on X. He stated he has long said China is nanoseconds behind America in AI. He called it vital for the US to win by racing ahead. The statement tried to soften his earlier assessment.
Nvidia Holds Top Market Position
Nvidia remains the world’s most valuable company. It became the first firm to reach a market value of $5 trillion last week. The chipmaker’s rise ties closely to the AI boom. Its chips remain central to AI development.
US-China Trade Position Creates Challenges
Nvidia faces a complicated position between the two superpowers. Both the US and China race to develop emerging tech. The company wants to sell to both nations. It scored a win when the Trump administration reversed course earlier this year.
The reversal allowed Nvidia to sell H20 chips to China. The deal required Nvidia to give 15 percent of revenue to the US. Beijing has since barred major domestic tech firms from buying those chips. China seeks to develop its own chipmaking capabilities instead.
The trade relationship between the US and China keeps changing. Huang has increasingly embraced President Trump. At Nvidia’s first Washington conference last week, the CEO praised Trump’s energy and manufacturing policies. He thanked the crowd for making America great again, using Trump’s signature phrase.
