Is US handing China the lead in AI race? Jensen Huang flags risks of Trump’s regulations, highlights Xi’s efforts – Crypto News – Crypto News
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Is US handing China the lead in AI race? Jensen Huang flags risks of Trump's regulations, highlights Xi's efforts Is US handing China the lead in AI race? Jensen Huang flags risks of Trump's regulations, highlights Xi's efforts

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Is US handing China the lead in AI race? Jensen Huang flags risks of Trump’s regulations, highlights Xi’s efforts – Crypto News

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US President Donald Trump thinks that restricting sales of Nvidia’s most advanced AI chips to Beijing will help America win the global AI race. Nvidia CEO Jensen Huang, however, thinks otherwise and has said that China will surpass the United States.

“China is going to win the AI race,” Huang told Financial Times unequivocally on Wednesday, commenting on the global race to develop next-generation artificial intelligence (AI) technology.

Huang’s comments, made on the sidelines of an FT summit in London, not only highlighted that China was starting to show signs of global AI dominance, but also underscored his own frustrations with US regulations.

Also Read | A tech sector reset is underway. It will have to survive Nvidia earnings.

Stating that Western countries, including the United States, are being held back by “cynicism” over AI, Huang urged the US government to promote policies that will help America in “winning developers worldwide”.

“As I have long said, China is nanoseconds behind America in AI. It’s vital that America wins by racing ahead and winning developers worldwide,” Huang also told Axios later.

He also noted that that while Beijing was busy subsidizing energy to promote AI development locally, the US was busy mulling over new rules that could erect as many as “50 new regulations” on AI development.

Also Read | China bans foreign AI chips; Nvidia turns to India with new startup alliance

Dissipating optimism

Interestingly, Huang was considerably more upbeat about the chances of the US edging China in the AI race even as recently as last week: during the Nvidia conference in Washington DC, the Nvidia CEO had said, “It is absolutely the case that we can lose this race. But we are well ahead today.”

That optimism seems to have dissipated now, very likely due to US policies: Huang’s comment to FT comes on the back of the Trump administration’s decision to continue the ban on sales of Nvidia’s most advanced AI chips to China, despite a meeting between Trump and Chinese President Xi Jinping.

Over the past several months, Huang has repeatedly emphasized the importance of the Chinese market in taking AI technology farther.

In April, the Nvidia chief told CNBC that China was “right behind” the US in terms of AI capabilities, and had reminded everyone, “Remember, this is a long-term, infinite race”.

Also Read | Trump officials torpedoed Nvidia’s push to export AI chips to China

Later, in August this year, Huang also stressed on the importance of the Chinese market, noting, “About 50% of the world’s AI researchers are in China.”

“The vast majority of the leading open source models are created in China. And so it’s fairly important, I think, for the American technology companies to be able to address that market,” the chief of the US chipmaker had said at the time.

As it stands, top-end Nvidia AI chips such as the Blackwell line are not sold to China, with the US citing fears of giving Beijing a military advantage through tech sharing as a reason for the ban.

China, for its part, has also imposed restrictions on foreign-made AI chips.

With Nvidia spearheading the development of AI tech in many parts of the world through its top-of-the-line chips, the chipmaker’s value recently soared to an immense $5 trillion, making it the first company to hit the milestone.

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