Nvidia's Jensen Huang softens his ‘China will win the AI race' remark to FT

Core Viewpoint - Nvidia CEO Jensen Huang expressed concerns that China is poised to surpass the U.S. in the AI race due to lower energy costs and looser regulations, although he later softened his statement, emphasizing that the U.S. must maintain its lead by supporting developers reliant on Nvidia's AI chips [2][3]. Group 1: Nvidia's Position in the AI Market - Huang indicated that China is "nanoseconds behind America" in AI, stressing the importance of the U.S. racing ahead to win global developers [3]. - Nvidia's market share in China has reportedly dropped to zero as Beijing conducts a national security review of its chips [5]. - The company has faced challenges in accessing the Chinese market, with speculation that China is using Nvidia's situation as leverage in trade negotiations [6]. Group 2: Regulatory and Trade Dynamics - Following discussions with U.S. President Donald Trump, Nvidia and AMD agreed to pay 15% of their Chinese revenues from existing AI processor sales to the U.S. government [4]. - Huang criticized the West, including the U.S., for being hindered by "cynicism" and excessive regulation, contrasting this with China's energy subsidies that lower costs for local developers [9]. - Trade talks between the U.S. and China did not yield concessions on chip policy, leaving Nvidia's access to the Chinese market uncertain [7][8].