WashingTone

Informed by Washington, Defined by Insight
Monday, May 12, 2025

Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower

Jensen Huang urges the U.S. to treat artificial intelligence as a national strategic priority. According to him, China is aggressively investing in technology and talent – and has no intention of slowing down. "If the U.S. doesn’t respond with similar investments, it could lose its technological edge."
Jensen Huang, CEO of tech giant Nvidia, issued a stark warning over the weekend, urging American policymakers to adopt a "long-term strategic priority" for artificial intelligence. This, he stressed, should include national investment in developing an AI-focused workforce. "Fifty percent of AI researchers worldwide are Chinese, and China is far from lagging behind in the race," Huang emphasized. "This must impact how we think about the game."

Speaking at the Hill & Valley Forum in Washington, Huang — whose company manufactures the chips powering most advanced AI applications — stated, “To lead, the U.S. must embrace the technology, invest in re-skilling, and equip every worker with the knowledge required to use it.” He added in a briefing with reporters that while China may still be trailing the U.S. in the AI race, the gap is narrow: "They’re right on our heels."


Huawei Is Rising Fast
Huang specifically addressed China’s tech giant Huawei, which is currently under U.S. sanctions: “It’s one of the most formidable tech companies in the world, and they’ve made huge strides in recent years.” He revealed that Huawei is already developing its own AI chips for Chinese clients.

A Huawei store in Shenzhen is symbolic of the country's determination. "The Chinese have no intention of stopping," Huang noted.


Export Restrictions Are Hurting Nvidia
Nvidia has emerged as one of the biggest casualties of the escalating U.S.–China tech tensions, particularly concerning AI chip exports. Although it initially appeared the company might weather the storm, the export restrictions imposed by the Trump administration have significantly damaged sales of Nvidia’s H20 processors to China — critical chips used for AI development, research, and training.

The company estimates its earnings could take a hit of around $5.5 billion due to these restrictions. According to Nvidia, the U.S. measures are counterproductive: they are likely to push Chinese companies — especially Huawei — to accelerate the development of local alternatives, increase their investment in AI chip innovation, and make their technology more competitive, ultimately reducing reliance on Western suppliers. “We are risking our own advantage,” Huang warned.

Earlier this month, it was reported that Huang raised his concerns about China's rapidly growing AI capabilities — particularly Huawei’s — in a closed-door meeting between Nvidia executives and the U.S. House Foreign Affairs Committee.

A source from the meeting revealed that company executives argued that if DeepSeek R1 — a high-performing AI model developed by Chinese firm DeepSeek — had been trained on Huawei chips instead of Nvidia’s, it could have triggered a global surge in demand for Chinese-made chips.


AI: The New Industrial Revolution
In his remarks in Washington, Huang compared the current AI revolution to the Industrial Revolution. He said the United States historically succeeded because it “harnessed energy faster than any other nation” — rather than focusing on the displacement of workers. In that spirit, Nvidia recently announced a $500 billion investment plan for AI infrastructure in the U.S. over the next five years, which includes building an AI server factory near Houston in collaboration with Foxconn.

Despite his forecast that AI will eventually replace a large portion of today’s jobs, Huang does not share the widespread concern over worker displacement. According to him, the nature of work will evolve. At Nvidia’s recent conference in San Jose, he even predicted a global shortfall of at least 50 million workers by the end of the decade and unveiled Groot N1 — a foundational model for humanoid robots designed to help bridge that labor gap.
Newsletter

Related Articles

0:00
0:00
Close
Transnational Crime Rings Exploit Stolen Identities to Drain Billions from U.S. Taxpayer Funds
US Withdraws Tourist Visas from Baja California Governor and Spouse
Trump's Upcoming Visit to Gulf Nations: Investment and Security at the Forefront
Trump fires director of U.S. Copyright Office, sources say
Trump says U.S. and China negotiated "total reset" in tariff talks
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
Newark Mayor Ras Baraka Arrested at ICE Facility Amid Congressional Visit
Trump, in a major concession, says the tariff on China should be 80% — but will leave it up to Bessent
India-Pakistan conflict may be first test for Chinese military tech
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
Warren Buffett to Step Down as Berkshire CEO After Nearly 60 Years
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
Massive Raid on Underground Nightclub in Colorado Springs Yields Over 100 Arrests
Malaysia Revises Growth Outlook Amid US Trade Talks
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Alberta's Push for Independence Raises Questions About Canada's National Unity
Virginia Giuffre, Prince Andrew and Jeffrey Epstein accuser, dies by suicide
Bill Maher Slams Liberals for ‘Trump is Hitler’ Smear: ‘Insult to Holocaust Victims
Elites vs. America: How Democrats Lost the Plot and the People
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Milwaukee Judge Arrested on Allegations of Aiding Undocumented Immigrant’s Escape
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
U.S. Intelligence Chief Refers Classified Leak Cases to Justice Department
U.S. Justice Department and DOGE Announce Cuts to Federal Grants Amid Broader Government Efficiency Efforts
Trump administration moves to BAN essentially ALL artificial food dyes in the USA food supply at RFK Jr.'s direction
Pope Francis: head of the Catholic church who pushed for social and economic justice
The legacy media will never show you this side of President Trump
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
×