Nvidia CEO Warns That China Will Win the AI Race.. Nvidia CEO Jensen Huang has sent an ominous warning: China might soon nullify America’s lead inin artificial intelligence (AI). Huang made the comments at the Financial Times’ Future of AI Summit on November 5, 2025, in which he said, “China is going to win the AI race,” citing China’s superior energy and regulatory landscape as advantages that have put it ahead of the US.
Huang noted that the US and China were “nanoseconds apart” in terms of AI progress, but warned that failing to connect with China’s sizable developer base and Nvidia’s own inability to sell into the Chinese market due to geopolitical reasons could prove harmful in the long term for America. He repeatedly emphasized the need to base so-called global AI infrastructure on American technology. Still, he conceded that it is necessary to be in China, where half of the world’s AI developers reside.
One major factor Huang pointed to is that China heavily subsidizes energy, which in turn lowers the costs of running the data centers where AI is deployed. He compared this to the increasing regulation in the US, with states drafting dozens of AI rules that he said could stifle innovation. “We must resist ‘cynicism’ in the West, and increase confidence and policy support for AI development,” Huang said.
The CEO emphasized Nvidia’s difficulty in selling its most advanced AI chips in China due to export limits set by the United States government, a flash point in a broader tech showdown between the two world powers. Former US President Donald Trump has backed keeping Nvidia’s next-generation chips for American customers only. Still, the company has not sought export licenses to China due to the Chinese government’s position, Huang said in part.
Huang asked for fair policies that would allow American technology to compete globally while still enabling American companies to enter important markets, such as China. He reiterated that the US is currently ahead, but the AI race is a long-term, never-ending competition that requires winning over developers worldwide to maintain the lead.
In short, Nvidia’s CEO stated that China’s favourable energy subsidies, less stringent rules, large developer ecosystem, and challenges with US export controls could help it become more innovative and dominant in AI than the US, unless the US changes its policies to be more open and supportive.