It looks like Nvidia CEO Jensen Huang is backtracking on his earlier comments about China winning the AI race. Huang told the Financial Times on Wednesday that “China is going to win the AI race,” only to release a notably softer statement soon after.
However, several hours after the FT published its report, Nvidia issued a separate statement from Huang on an official X account.
“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,” he added.
In the interview with the FT, Huang expressed concerns that the West, including the U.S., was being held back by “cynicism” and excessive regulation — contrasting that with China’s energy subsidies aimed at lowering costs for local developers using domestic chips.
In 2025, NVIDIA’s operations in China were heavily affected by U.S. export-control regulations. In April, the company announced that its H20 AI accelerator destined for China would require a U.S. export license, resulting in up to US $5.5 billion in charges related to cancelled orders, excess inventory, and purchase commitments. For the quarter ending April 27, 2025, NVIDIA reported China sales of roughly US $4.6 billion, representing about 12–13 % of overall revenue.
READ: SoftBank to invest $500 million in robotics startup Skild AI (
By mid-2025, NVIDIA stated it would exclude China from forward revenue and profit forecasts, reflecting regulatory uncertainty and licensing limitations. Although export licences were later granted under certain conditions, the company had not yet resumed shipments of H20 chips to China. The situation remains subject to geopolitical and regulatory risk, meaning China, while a large market opportunity (~US $50 billion in AI/data-center demand), is treated as constrained in NVIDIA’s near-term strategy.
Huang has long stated that the U.S. can stay ahead in the AI race if it keeps developers reliant on Nvidia’s leading AI chips — an argument the CEO has used to lobby against export restrictions on his company’s sales to China.
NVIDIA’s 2025 experience in China illustrates the challenges of operating in high-stakes global AI markets where technological leadership, regulatory policy, and geopolitical tensions intersect. Success in such markets depends on strategic innovation and agility, as projected financial impacts and market potential are inherently conditional and not guaranteed outcomes. The company’s approach demonstrates that maintaining long-term technological advantage through developer ecosystems, research, and innovation can be more critical than immediate market access, especially in regions where regulations can sharply constrain operations. Even leading technology companies face uncertainty when navigating export controls, licensing requirements, and shifting policy landscapes, underscoring the broader fragility of global supply chains in advanced AI sectors.
READ: Perplexity AI looks to raise $500 million as competition with Google Search grows (
At the same time, interpretations of the U.S.-China AI race reflect corporate positioning rather than definitive predictions, highlighting the importance of framing public messaging carefully while pursuing competitive advantage. NVIDIA’s cautious strategy shows that high-potential markets can simultaneously offer opportunity and risk. Sustaining innovation leadership, protecting intellectual property, and ensuring regulatory compliance are essential for shaping the long-term trajectory of global AI competition. Overall, 2025 demonstrates that success in AI is determined not just by access to markets but by the ability to innovate strategically under uncertainty.