Nvidia CEO Jensen Huang Highlights China’s Rapid Rise in Global AI Race at Computex 2025
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Jensen Huang, CEO of Nvidia, a leading U.S. technology company specializing in graphics processing units (GPUs) and artificial intelligence solutions, has emphasized China’s significant progress in AI research and development. Speaking at the Computex 2025 trade show in Taipei, Taiwan, on May 19, Huang described China as a formidable competitor in the global AI race and highlighted the need for ongoing innovation and global collaboration.
China’s AI Research Strength
During his keynote address, Huang noted that approximately half of the world’s AI researchers are based in China, underscoring the country’s substantial intellectual resources. He described the global competition in AI as an “infinite race”, with China “very close” behind the United States in terms of development. Huang praised Chinese AI researchers as “world-class”, highlighting their important roles in major U.S. AI companies, including Anthropic, OpenAI, and DeepMind. He stressed that global competition, particularly with China, is essential for driving technological progress and innovation.
U.S. Export Controls and Market Impact
Huang addressed the impact of U.S. government export controls on advanced AI chips, which have affected Nvidia’s business operations in China. The restrictions, implemented during the Biden administration, have limited the sale of Nvidia’s high-end chips—such as the H100 and its China-specific variants like the H800 and H20—to Chinese companies. As a result, Nvidia has reported significant financial impacts, including a one-time charge of US$5.5 billion due to lost revenue from these sales. At Computex, Huang described the export controls as a “failure” that also led to a reduction in Nvidia’s market share in China—from about 95% to 50% over the past four years—as domestic competitors have risen.
Huang indicated that while the U.S. government has begun to partially ease some export restrictions, the policy landscape remains complex. He has advocated for allowing U.S. companies to compete in the Chinese market, arguing that this would benefit the U.S. economy by generating revenue and creating jobs. However, any significant changes to export policy are subject to future government decisions.
Rise of China’s Domestic AI Solutions
Huang also acknowledged China’s increasing self-reliance in AI hardware, pointing to the growth of domestic technology companies such as Huawei and SMIC. He described Huawei as a “formidable” competitor, with its Ascend series of AI processors offering alternatives to Nvidia’s products. Many Chinese AI firms, including DeepSeek, have previously relied on Nvidia’s China-specific chips to develop advanced models, but these are now restricted under current U.S. policies. In response, Nvidia continues to innovate, developing new solutions to comply with regulations while seeking to address market needs.
Global Implications of the AI Race
With a significant share of the world’s AI research talent, China is positioned as a major player in global AI innovation. Huang argued that excluding U.S. companies from China’s market—where many AI developers operate—could be counterproductive to technological and economic progress. At Computex, Nvidia announced NVLink Fusion, a new technology designed to improve chip-to-chip communication for AI infrastructure, which can work with chips from other manufacturers. The company also revealed plans for “Nvidia Constellation”, a new global headquarters in Taipei, aimed at strengthening partnerships with key suppliers such as TSMC and Foxconn. Additionally, Nvidia is partnering with the Taiwanese government, TSMC, and Foxconn to develop Taiwan’s first AI supercomputer, utilizing 10,000 Blackwell GPUs as part of a broader initiative to advance the country’s AI capabilities.
Future Outlook
China’s rapid AI development, supported by its large research community and growing domestic innovation, presents both challenges and opportunities for companies like Nvidia. The partial easing of U.S. export restrictions could create new opportunities for collaboration, but the future trajectory of the global AI race remains uncertain. Nvidia’s ongoing strategic partnerships and new technology initiatives demonstrate its commitment to maintaining a leading position in AI, despite rising competition and evolving policy landscapes.
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