US Needs ‘Finesse’ To Stay Ahead Of China, Nvidia Boss Says

Nvidia Corp. Chief Executive Officer Jensen Huang said that maintaining the US edge in artificial intelligence will require a steady approach that ensures China remains hooked on American technology. 

The chipmaker is in an “awkward place” as President Donald Trump prepares to meet with his Chinese counterpart Xi Jinping later this week, Huang told reporters Tuesday at a company conference in Washington. The Nvidia chief praised Trump’s commitment to winning but urged careful engagement with China because of the country’s massive software developer base and its growing technology capabilities. 

During the meeting, Trump and Xi are expected to finalize an agreement to ease trade tensions between the world’s two largest economies. When it comes to those negotiations, Huang said he has “no idea” if GPUs — the chips central to artificial intelligence capabilities — will be a topic between Trump and Xi.

Huang was careful to leave the negotiating to Trump but encouraged US leadership to think longer term on its overall AI strategy.

“A policy that causes America to lose half of the world’s developers is not beneficial long-term,” Huang said, warning that it was still possible for the US to cede the AI race to China. Keeping US technology in front requires finesse,” he said. “It requires balance. It requires long-term thinking.”  

Huang said that while China has always assured him it wants to be an open market, officials in Beijing have been urging companies to shun the one type of AI chip he’s allowed by the US government to sell there. 

He said China needs to decide whether it wants to continue to open its doors or become “selectively open.” Huang has said that Nvidia’s market share in China had gone from 95% at its peak to zero. 

Huang declined to comment when asked whether he would meet with Xi during his own travels to South Korea this week. 

He said Trump’s vow to win the global competition in AI is exactly what the US needs. He said that his conversations with the president — often late in the evening Washington time — are focused on bringing back manufacturing to the US and making the economy stronger.

Even so, Huang said, the US risks falling behind in AI if it fails to welcome immigrants who contribute to science and tech industries. He reiterated his criticism of export restrictions enacted during the Biden administration that he says pushed some developers to build on Chinese tech platforms. 

Read More: China Urges Firms to Shun Nvidia H20 Chips After Trump Pivot 

At the Chinese Communist Party’s Central Committee meeting last week, leaders pressed for greater self reliance in advanced technology, especially in the areas of semiconductors and artificial intelligence. Nvidia’s leader said Chinese companies want to use his products and US technology in general because they’re the best. 

“Their industries would like to be as productive as possible,” he said. “American technology is the best, and when it’s the best, it’s also the most affordable.”