Nvidia’s Huang Says China Will Win AI Race

By Douglas A. McIntyre Published Nov 6, 6:40AM EST

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Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang says China will win the artificial intelligence (AI) race.
If he is correct about that, it is bad news for more than just Nvidia.

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Nvidia’s Huang Says China Will Win AI Race — © Slaven Vlasic / Getty Images Entertainment via Getty Images

Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction) CEO Jensen Huang said China would win the artificial intelligence (AI) race. The company walked back the comments, but only slightly. He did not make the statement by mistake. There are two reasons he could have made it.

Huang must be concerned that the United States will not allow Nvidia to sell its high-end chips to China. This has caused pushback by China, which says it can build its own world-class chips. That hurts Nvidia sales.

The other reason Huang may have made the statement is that he believes it.

Either way, his comment was unequivocal. “China is going to win the AI race,” he told the Financial Times.

Huang could be correct for several reasons. The first is that China appears to run top-tier AI software with chips that are not as powerful as Nvidia’s. This allows Chinese programmers to build AI software inexpensively. The government has given financial incentives to use chips made by tech firms in the country.

In January, DeepSeek said it spent only $5.6 million to build its public-facing software. U.S. companies spend tens or even hundreds of millions of dollars to produce equivalent products.

Another problem the U.S. has is a possible “brain drain” among top developers because of restrictions on people who are not citizens. Some have been told they must leave the country.

Even if Huang is only partially right, it is bad news for companies from Microsoft to Amazon to OpenAI.

Nvidia Stock Price Prediction and Forecast 2025–2030

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.