As competition over artificial intelligence intensifies, U.S. tech leaders are warning that China’s rapid state-backed progress could soon outpace the West, raising concerns that America is losing its technological edge.
At a time when artificial intelligence is reshaping global power, Nvidia's chief executive has warned that the U.S. risks surrendering its lead to China. Speaking at the Financial Times' Future of AI Summit, Jensen Huang said the West is being held back by "cynicism" and regulatory overreach, while Beijing's state-backed push is fuelling rapid advances in AI development.
Huang cautioned that a growing patchwork of state-level rules in the U.S. could soon create "50 new regulations," splintering innovation and slowing progress. By contrast, he pointed to China's energy subsidies that make it cheaper for companies to power massive data centres and train AI systems, remarking that "power is free" for Chinese firms developing domestic alternatives to Nvidia's chips.
His remarks come as the Trump administration maintains its export ban on Nvidia's most advanced Blackwell chips to China, despite a recent meeting between U.S. President Donald Trump and Chinese leader Xi Jinping.
Huang has previously warned that China's AI systems are fast closing the gap with American models and that restricting chip exports may backfire by driving Beijing toward full technological self-sufficiency.
Following his meeting with Xi, Trump told CBS News that the U.S. would retain exclusive access to the most sophisticated chips, saying, "The most advanced, we will not let anybody have them other than the United States."
White House spokesperson Karoline Leavitt reinforced that stance on Tuesday, stating, "As for the most advanced chips, the Blackwell chip, that's not something we're interested in selling to China at this time."
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Wall Street closed sharply lower on Thursday, dragged down by steep losses in Nvidia, Tesla, and other artificial-intelligence heavyweights, as investors dialed back expectations for further Federal Reserve interest-rate cuts amid renewed inflation concerns and mixed signals from policymakers.
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