Nvidia CEO’s Warning: Cutting Off China Hurts America’s AI Race
Nvidia CEO Jensen Huang delivered a powerful message in Washington, D.C., warning that the US strategy of restricting advanced Artificial Intelligence (AI) chips to China is a self-defeating move that ultimately hurts American competitiveness. Speaking at Nvidia’s first developers’ conference in the capital, Huang argued that to truly win the global AI race, the US needs to keep China’s vast pool of developers connected to the American technology ecosystem.
The core of his argument is a pragmatic one: while he wants the US to lead and for the world to adopt the American technology stack, isolating China from this technology comes at a steep price.
“A policy that causes America to lose half of the world’s AI developers is not beneficial long term, it hurts us more.”
The Cost of Isolation
Huang’s warning comes as escalating trade and national security tensions have severely impacted Nvidia’s business in China, a critical market. Washington has continued to restrict the export of the company’s most advanced AI chips to Beijing, leading to a dramatic shift in market dynamics.
Huang stated that Nvidia’s market share in China has dropped from a commanding 95% to essentially zero. This collapse is not just a loss of sales; it represents a loss of funding that is essential for maintaining the US lead in the future. Huang contended that Nvidia needs access to roughly $50 billion in potential sales from the Chinese market. This revenue is necessary to finance the company’s massive research and development efforts based in the US and sustain its competitive edge in creating the next generation of AI technology.
The sudden shift has also prompted China to boost its domestic semiconductor industry. Major Chinese firms are reportedly being urged by Beijing to stop buying Nvidia hardware and instead turn to local suppliers like Huawei Technologies and Cambricon. This accelerates the development of competing technology that could eventually challenge American dominance.
Doubling Down on American Tech
While warning against the dangers of isolation, Huang simultaneously highlighted Nvidia’s commitment to reinforcing the American technology foundation. He announced significant new initiatives focused on domestic investment and strategic partnerships:
Supercomputers for National Security: Nvidia is building seven new supercomputers for the US Department of Energy. The largest of these systems, which will be constructed with Oracle, will include 100,000 of Nvidia’s new Blackwell chips. These systems are vital, designed to support national defense, nuclear research, and energy development.
Manufacturing Investment: Huang praised efforts to boost US domestic chip production, noting that Nvidia is working with Taiwan Semiconductor Manufacturing Co. (TSMC) to manufacture chips in Arizona and is assembling its systems in facilities across Texas and California.
New Partnerships: Nvidia unveiled new deals with companies across different sectors, including Nokia for advancing 6G networks, Uber Technologies and Stellantis for autonomous vehicles, and Palantir Technologies for enhancing AI infrastructure for government and enterprise clients.
Huang’s message to Washington is clear: America can build the best technology at home, but to maintain the lead, it must engage globally. Shutting out half of the world’s AI developers risks ceding influence and revenue, which are the lifeblood of American innovation.
