China is ‘nanoseconds behind’ US in chips, says Nvidia’s Jensen Huang

Allowing US companies like Nvidia to compete in China fits the interests of both Beijing and Washington, according to Jensen Huang, the US chipmaker’s founder and CEO, as Chinese players gear up to be Nvidia-free.

Washington should allow its technology industry to compete globally – including in China – to “proliferate the technology around the world” and thereby “maximise America’s economic success and geopolitical influence”, he said.

China is “nanoseconds behind” the US, “so we’ve got to go compete”, Huang said, highlighting China’s progress in chipmaking and its manufacturing potential. He pointed to the country’s deep pool of talent, hustling work culture and internal competition across its provinces.

“This is a vibrant, entrepreneurial, hi-tech, modern industry,” he said on BG2, a podcast hosted by tech investors Brad Gerstner and Bill Gurley.

Huang added that he hoped and believed China would remain open to outside investment, noting that Beijing has pledged to maintain “an open market”.

“What’s in the best interest of China is for foreign companies to invest in China, compete in China and for them to also have vibrant competition themselves,” he said on an episode released on Friday. “They would also like to come out of China and participate around the world.”

Nvidia’s graphics processing units (GPUs) are regarded as the backbone of training and running artificial intelligence models, which has helped push the company’s market capitalisation to record highs. But sales to China, one of the world’s biggest markets, have been disrupted by geopolitical tensions. Earlier this year, the US abruptly barred exports of the H20 – a downgraded chip tailored to comply with restrictions – before relenting after a 15 per cent levy to the US government was agreed.

South China Morning Post