Nvidia's Jensen Huang praises U.S. trade moves and warns of China's AI progress

Jensen Huang lauds US trade moves as visionary and crucial for tech leadership.

: Nvidia CEO Jensen Huang praised US trade initiatives aiming to re-industrialize the country, calling their tariff strategy visionary. However, he warned of China's rapidly progressing AI sector, which could challenge US dominance, especially with companies like Huawei narrowing the gap. Nvidia faces revenue challenges due to US export restrictions on AI technologies, expecting a potential $8 billion sales loss in China this quarter. By emphasizing the importance of US policies on tech and education, Huang highlighted the need to keep attracting talent and maintain global leadership.

Nvidia's CEO Jensen Huang expressed strong support for recent US trade policies, which he believes could significantly boost American manufacturing and the tech industry. In a conversation with Bloomberg, Huang described the decision to utilize tariffs as a part of a strategy to attract global investments in the US and to re-industrialize domestic manufacturing as "utterly visionary." He emphasized the far-reaching implications of these policies, which are likely to transform the US economy for decades.

Huang noted the strategic approach of the US government to utilize tariffs as a lever for economic revitalization. By encouraging global partners to establish manufacturing bases within the US, the policy aims not only to bolster local economies but also ensure technological leadership. Huang revealed that Nvidia is actively participating in this vision by setting up operations and encouraging collaborations that align with this government strategy.

Despite his optimism about US trade policies, Huang also shared concerns over the rapidly advancing AI capabilities of China. He highlighted that, due to export restrictions, Nvidia expects a loss of approximately $8 billion in sales in China. With China being a major market and home to nearly half of the world's AI researchers, US restrictions have inadvertently pushed Chinese entities like Huawei to develop formidable domestic alternatives, gradually matching Nvidia's offerings.

Huang acknowledged the increasingly competitive Chinese tech landscape, noting that Huawei's latest AI chip now rivals Nvidia's previous top-performing model, the H200. This underscores the speed at which China's AI industry is evolving, presenting a formidable challenge to maintaining US technology leadership. Huang stressed that while the policies aim to protect American technological interests, they have also spurred Chinese innovation and adaptation.

The interview also touched on the impact of US visa policies, particularly concerning students from China. Huang, an immigrant himself, emphasized the importance of attracting the world's brightest minds to the US to sustain its technological edge. He expressed hope that US policies would continue to support this vision, allowing the country to remain a hub for innovation and development.

Sources: Bloomberg, TechSpot

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