Nvidia CEO Jensen Huang: China Is Not Falling Behind in the AI Race

As global tensions over artificial intelligence (AI) leadership continue to mount, Nvidia CEO Jensen Huang issued a stark reminder to U.S. policymakers and industry leaders: China is not lagging behind in the AI race.

Speaking at a high-profile technology conference in Washington on Wednesday, Huang cautioned against underestimating China’s technological capabilities, calling Huawei "one of the most formidable technology companies in the world."

“China is right behind us,” said Huang. “We are very close. Remember, this is a long-term, infinite race.”

AI Race Tightens Between Superpowers

Nvidia, whose high-performance chips are foundational to many of today’s most advanced AI systems, is feeling the weight of intensifying U.S.-China competition. Huang's comments come as Washington tightens export controls, especially those affecting Nvidia’s cutting-edge products like the H20 chip, developed in response to earlier restrictions.

Earlier this month, the Trump administration imposed new limitations on shipments of Nvidia’s AI chips to China, requiring special licenses for export. The move directly impacts the H20 chip, which had been modified to comply with previous U.S. restrictions.

As a result, Nvidia now forecasts a $5.5 billion revenue loss due to the enforcement of these latest regulations.

Despite these setbacks, Huang was adamant that China continues to gain ground in AI development.

“They’re incredible in computing and network technology—all these essential capabilities to advance AI,” Huang said of Chinese firms, adding, “They have made enormous progress in the last several years.”

Huawei’s Growing Role in AI Innovation

At the center of China’s AI ambitions is Huawei, a company long embroiled in trade disputes with the U.S. Despite being on a U.S. trade blacklist, Huawei is actively developing AI chips tailored for the Chinese market, stepping up as a direct competitor in the global semiconductor space.

Huang’s acknowledgment of Huawei’s advancements signals the shifting power dynamics in AI innovation and underscores the need for strategic policy approaches in the U.S.

U.S. Policy, Infrastructure, and AI Leadership

Huang emphasized the importance of supportive domestic AI policies rather than solely focusing on limiting foreign access. According to him, the key to long-term success lies in ensuring that American companies remain competitive through innovation and infrastructure.

“This is an industry that we will have to compete for,” Huang said, urging lawmakers to adopt policies that foster AI growth instead of stifling it through overregulation.

His call aligns with Nvidia’s recent plans to build $500 billion worth of AI infrastructure across the U.S. over the next five years—a move welcomed by President Trump, who on Wednesday referred to Huang as “my friend Jensen.”

Huang reiterated Nvidia’s commitment to domestic manufacturing, noting that AI servers will soon be assembled near Houston, Texas, through a partnership with Foxconn.

“With willpower and the resources of our country, I’m certain we can manufacture onshore,” Huang affirmed.

Market Volatility Amid Global Uncertainty

Even as Nvidia positions itself as a central player in the AI revolution, market headwinds remain. Shares of Nvidia have fallen over 20% in 2025, retreating from last year’s meteoric rise that saw the stock nearly triple in value.

On Wednesday, Nvidia’s stock dropped nearly 3%, reflecting broader investor concerns about regulatory hurdles, geopolitical tensions, and supply chain constraints.

Analysis: Huang’s remarks add nuance to the current U.S.-China tech standoff. While Washington attempts to slow China’s technological ascent through export controls, Chinese firms like Huawei are accelerating efforts to build domestic alternatives. In this evolving scenario, the race for AI dominance looks less like a sprint and more like a marathon—one where policy, innovation, and international strategy will shape the outcome.