Nvidia CEO Warns China's AI Competitiveness Rises Amid U.S. Export Bans

Nvidia CEO Jensen Huang has warned that U.S. export restrictions on AI chips may be inadvertently helping China's Huawei gain ground in the global AI race, as Chinese companies accelerate their own semiconductor development. Huang emphasized that China and the U.S. are now nearly tied in AI capabilities, calling the contest a 'long-term, infinite race' with no quick victories. He stressed that half of the world's AI researchers are Chinese, highlighting the challenge for the U.S. to maintain its lead without significant investment in workforce development and innovation. Huang called on American policymakers to focus on reskilling workers and fostering domestic manufacturing rather than relying solely on trade restrictions. Recent U.S. limits on Nvidia's H20 chip sales to China are expected to cost the company $5.5 billion, while Huawei is moving to fill the market gap. Analysts and Huang agree that U.S. sanctions have accelerated Chinese autonomy in AI and semiconductors, narrowing the technological gap between the two nations.