Nvidia CEO Jensen Huang said the United States must recognize China as a major competitor in chips, AI and research. Huang said American companies should compete internationally through innovation and infrastructure. Huang spoke with Yahoo Finance journalist Deirdre Bosa at Nvidia's GTC Berlin conference on Wednesday.
Huang was responding to a question about reports of collaboration between DeepSeek and Huawei on chip designs. Huang said the United States should consistently take China seriously as a large-scale manufacturer and technology rival. Huang praised China's ability to produce chips, open AI models and AI researchers on a massive scale. However, Huang said American frontier laboratories, computing systems and infrastructure remain the world's strongest. Huang credited the U.S. government and policymakers with enabling American companies to operate in Africa and Central Asia.
Huawei is expanding in China's AI accelerator market. IDC's analysis earlier this month put Nvidia's market share at 34% in the first half of 2026, against Huawei's 28%. IDC said Nvidia shipped 678,000 accelerators in China during that period. IDC said Nvidia's shipments in China declined 44% compared with the corresponding period a year earlier.
Huang previously urged the United States to adopt China's AI models instead of prohibiting the models. Huang described the technology as excellent. Huang argued that open-source models could broaden AI adoption without endangering closed-model providers, including OpenAI and Anthropic. Huang also rejected concerns that China could use AI models to undermine American companies. Huang said there was no possibility that China's AI would force American companies out of the market.
Former Google CEO Eric Schmidt said in a podcast interview that China is about six months behind the United States in AI. Schmidt said China could nevertheless win because China's products are available free. Schmidt said inexpensive and free AI models from China, including open-weight systems, could attract developing economies unable to afford costly Western alternatives.
Benzinga Pro data showed Nvidia shares had risen 15.78% year-to-date. Nvidia shares traded at $215.92 on Thursday, down 2.73%.
Nvidia CEO Warns US Must Take China Seriously in AI and Chip Competition
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Summary
Nvidia CEO Jensen Huang warned the U.S. must treat China as a key rival in AI and chips. He noted China’s strong mass production and AI model capabilities, while the U.S. leads in labs and infrastructure. IDC data showed a 44% drop in Nvidia’s China shipments in H1 2026, with Huawei taking 28% market share. Huang also called for the U.S. to embrace China’s open-source AI models instead of banning them. Open interest in AI-related assets remains high amid shifting market dynamics. Fear and greed index readings suggest growing uncertainty in the sector.
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