NVIDIA CEO Jensen Huang warned that Chinese AI efforts could give China a superior position over the United States in artificial intelligence [1].
This shift would signal a critical pivot in the global technology race, potentially undermining U.S. economic and strategic advantages in the AI sector.
Huang said that Chinese AI rivals are filling the void left by U.S. companies exiting China. He said that Huawei has become quite formidable [2]. Specifically, Huang pointed to the risk of DeepSeek optimizing its models for Huawei's Ascend chips.
"It would be a horrible outcome for the United States if DeepSeek optimises its models for Huawei's Ascend chips," Huang said [1].
Despite these warnings, current market data suggests a gap between potential and present influence. Four key Chinese AI chip players together hold less than 1% of the global market share [4]. However, the trajectory of local development remains a primary concern for the industry.
Huang said that Huawei could emerge as a top competitor in AI chips by 2025, challenging U.S. dominance [3]. This projection suggests that the integration of specialized hardware and software could accelerate China's capabilities, regardless of current global market percentages.
The warning comes as the U.S. continues to restrict high-end chip exports to China. Huang said that these restrictions may be driving Chinese firms to build a more self-reliant and formidable AI ecosystem [2].
“"It would be a horrible outcome for the United States if DeepSeek optimises its models for Huawei's Ascend chips."”
The tension between current market share and future capability defines the AI race. While Chinese firms currently control less than 1% of the global AI chip market, the strategic alignment of domestic hardware like Huawei's Ascend chips with optimized models like DeepSeek could bypass U.S. export controls. If China successfully builds a closed-loop ecosystem, the U.S. may lose its primary lever of influence—hardware superiority—forcing a shift from a containment strategy to direct competition with a self-sufficient rival.
