Huawei May Capitalize on AI Chip Restrictions, According to Nvidia CEO Jensen Huang, Whose Technology Currently Outpaces Huawei's, Yet This Lead May Not Last Indefinitely
Huawei Warns: US Trade Policies May Cede Lead in AI to China
In an interview at VivaTech, Nvidia CEO Jensen Huang voiced concerns about potential missteps by the U.S., which could hand China a significant victory in the current AI competition. The escalating U.S.-China trade conflict and recent policy changes could jeopardize America's lead in AI, Huang warned.
China, the world's second-largest economy, boasts Huawei, its top tech firm. The protracted U.S.-China feud over advanced chips has been ongoing for years, with the U.S. currently in the lead. However, recent decisions by the U.S. government threaten this dominance.
"Our technology is a step ahead of theirs," said Huang regarding Huawei. Yet, he issued a caution: "If the U.S. doesn't engage with China, Huawei has China secure, and Huawei has the rest of the world secure."
Since 2020, the U.S. has opted for a policy of excluding large Chinese tech firms from access to advanced chipmaking technologies. This includes placing them on the Department of Commerce's "Entity List," which flags firms deemed security risks, and intensely restricting US leading-edge technology sales to China.
Tensions have increased in recent weeks as President Trump escalated his tariff offensive against China. The administration recently announced plans to "aggressively revoke visas of Chinese students," prompting China to recall its students home and recruit more AI professionals to its institutions.
Huang expressed concern that giving up half of the world's AI researchers isn't a wise move if the American technology stack is to win globally. "As long as all the AI developers are in China, I think [the] China stack is going to win," he stated. "We have to be mindful of near-term actions and their long-term, unintended consequences."
Reports show that China has nearly doubled the U.S.'s output on next-generation chip technologies over the past ten years, with a majority of the most-cited, highest-quality studies coming from China. This trend is expected to continue as the Trump administration starts to "renegotiate" CHIPS Act contracts and defund research institutions.
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Huang refrained from criticizing or blaming the Trump administration for the policy changes that potentially bolster China's position. He indicated that the president "understands what he's doing." He continued, "I trust him, and we'll support him as best we can."
As for Huawei, the company recognizes it still needs to close the gap with its U.S. counterparts. Huawei CEO Ren Zhengfei recently admitted, "The U.S. has overhyped Huawei's accomplishments. Huawei is not that great. We need to work hard to reach that level." Despite its self-deprecation, Huawei remains a major player in China's domestic chip initiatives. As China strengthens its domestic chip industry, the future will reveal whether modern U.S. trade policies are boosting or hindering its progress.
Follow Tom's Hardware on Google News to stay updated on our coverage of this fast-evolving situation.
- The escalating U.S.-China feud over advanced chips, exacerbated by recent policy changes, could pose a threat to America's lead in artificial intelligence, as warned by Nvidia CEO Jensen Huang.
- The policy of excluding large Chinese tech firms from access to advanced chipmaking technologies, such as placing them on the Department of Commerce's "Entity List" and restricting US leading-edge technology sales to China, may ultimately cede the lead in AI to China, according to Huang.
- The recent announcement by the U.S. administration to "aggressively revoke visas of Chinese students" has prompted increased concerns, as the majority of the most-cited, highest-quality studies on next-generation chip technologies come from China. This decision could potentially strengthen China's position in the AI industry.
- The protracted trade conflict between the U.S. and China, coupled with policy-and-legislation decisions, might inadvertently aid China's technological advancement, particularly in the field of artificial intelligence, and have long-term consequences for the global tech market.
