Nvidia CEO Warns China Set to Lead AI Race Amid U.S. Energy and Regulatory Hurdles
Nvidia CEO Jensen Huang warned that China is likely to surpass the United States in the global artificial intelligence race, citing lower energy costs and a less restrictive regulatory environment as key competitive advantages.
Speaking at the Financial Times Future of AI Summit on Wednesday, Huang said, “China is going to win the AI race,” following recent U.S. decisions to maintain restrictions on advanced chip exports to Beijing. The policy remains in place despite renewed talks between President Donald Trump and Chinese leader Xi Jinping.
U.S. Regulations Seen as a Drag on Innovation
Huang criticized what he described as growing “cynicism” in Western nations, including the U.S. and the U.K., and called for “more optimism” toward the future of AI. He also warned that a patchwork of state-level AI regulations—potentially “50 new rules”—could stifle innovation and add unnecessary complexity for companies operating nationwide.
Energy Subsidies Give China a Competitive Edge
The Nvidia chief pointed to China’s state-backed energy subsidies as a major advantage for domestic technology firms developing AI models and data centers. “Power is free,” Huang remarked, referring to the low-cost energy available to Chinese companies that compete with Nvidia’s products.
According to recent reports, China has boosted subsidies for large data centers run by ByteDance, Alibaba, and Tencent, helping offset the higher costs of locally made AI semiconductors from Huawei and Cambricon—which are typically less energy-efficient than Nvidia chips.
Huang Calls for Balanced U.S. AI Policy
Huang has repeatedly stressed that U.S. AI developers maintain only a narrow lead over their Chinese counterparts. He urged Washington to adopt a more open trade stance on advanced semiconductors to preserve America’s technological influence and prevent the global market from fragmenting into separate ecosystems.
The Nvidia CEO’s remarks underscore the growing geopolitical and economic competition in artificial intelligence, where energy access, regulation, and supply chain policy have become central to national strategy.
