On November 6, 2025, Jensen Huang, the CEO of NVIDIA, sounded an alarm in an interview. He cautioned that China might overtake the U.S. in the field of artificial intelligence. China could achieve this by taking advantage of its low energy costs and a more lenient regulatory landscape.

Huang highlighted that the new AI regulations being implemented across different U.S. states could lead to a fragmented situation, where there would be "50 different sets of rules." In contrast, China's affordable energy prices allow its domestic tech firms to run locally - developed AI chips at a reduced cost.

Previously, Huang had already pointed out that the latest AI models from the U.S. do not show a substantial edge over their Chinese counterparts. He even called on the U.S. government to open up the market to Chinese chips.

However, the Trump administration took a hard - line stance. It prohibited China from using NVIDIA's most cutting - edge Blackwell chips. Moreover, it mandated that both NVIDIA and AMD pay 15% of their revenues from AI processors, which were custom - designed for the Chinese market and sold in China, to the U.S. government.

Since China's DeepSeek unveiled its large language model and captured the world's attention, the U.S. has been grappling with concerns over China's rapid progress in AI for nearly a year.