In a striking statement, NVIDIA CEO Jensen Huang has cautioned that China is rapidly catching up with the United States in artificial intelligence (AI) development — and could soon overtake the U.S. if current trends continue. Speaking at the Financial Times Future of AI Summit, Huang said that China is only “nanoseconds behind” in AI progress, and that its lower energy costs and faster regulatory environment give it a serious edge.
Huang noted that while the U.S. remains a leader in AI research and semiconductor design, rising energy costs, fragmented regulations, and policy restrictions are slowing its momentum. In contrast, China’s government support, cost-efficient data centers, and rapid expansion of AI infrastructure are helping the country scale up faster than expected.
He pointed out that China’s data centers benefit from subsidized electricity, which drastically reduces operational expenses — a key factor when running large AI models that demand immense computing power. “Energy and infrastructure costs matter,” Huang said, adding that China’s willingness to move quickly with fewer regulatory hurdles could make it a dominant AI player in the near future.
The NVIDIA chief also warned that U.S. export restrictions on advanced AI chips could backfire. By blocking the sale of top-tier semiconductors to China, the U.S. might unintentionally push China to develop its own technology ecosystem, making it more self-reliant and competitive.
Following media coverage of his remarks, NVIDIA clarified that Huang’s comments were not meant to suggest that China has already won the race, but rather that America risks losing its lead if it doesn’t move faster to expand AI infrastructure and reduce costs.
Experts say Huang’s comments reflect a growing concern among tech leaders that the AI race is shifting from innovation to implementation — and that China’s scale, energy advantage, and decisive policymaking could tilt the balance in its favor.