Focus on the BIG picture.
Saturday, Apr 11, 2026

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
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
James Blair Weighs Temporary Exit from White House to Support Trump Political Efforts
White House Engagement With Indiana Senate Candidate Revealed Through Calls and Messages
White House Staff Advised Against Betting on Prediction Markets in Internal Warning
Vatican Official Notes Unusual Nature of Cardinal’s Pentagon Meeting
Democratic Party Faces Funding Shortfall Despite Anticipated Post-Election Boost
Trump Confronts Inflation Surge Linked to Iran Conflict as Markets React
Non-Compete Ban in Washington State Sparks Optimism and Debate Across Tech Sector
Plans Unveiled for 250-Foot Monumental Arch in Washington Reflecting Trump’s Vision
US Negotiators Set to Press Iran for Release of Detained Americans
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
Australia Emphasizes Rule of Law in Shifting Global Landscape as Trump Era Reshapes Geopolitics
Melania Trump Issues White House Statement Rejecting Allegations and Reaffirming Integrity
George Clooney Responds to White House Remarks Amid Political and Cultural Exchange
White House Highlights New Ballroom as Key Security Enhancement for Presidential Operations
Easter Message from USDA Secretary Sparks Internal Debate Over Workplace Communication
Washington Adjusts Tax Structure with Rollbacks Amid Introduction of Income Tax
Israel Pursues Direct Talks with Lebanon While Maintaining Pressure on Hezbollah
Digital Detox Research Suggests Potential to Reverse Long-Term Effects of Social Media Overuse
Strategic Openings Suggest Path for Trump to Secure Breakthrough on Iran
Chinese Firm’s Washington Outreach Linked to Trump-Era Networks Yields Policy Breakthrough
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
Trump Calls for Toll-Free Reopening of Strait of Hormuz to Safeguard Global Trade
Oil Industry Urges White House to Secure Strait of Hormuz as Supply Concerns Mount
Trump and First Lady Host White House Easter Egg Roll Celebrating Tradition and Unity
White House Challenges NATO Position on Iran as Trump Holds Talks with Alliance Chief
White House Plans Major Workforce Reduction at TSA as Part of Efficiency Drive
White House Highlights Trump’s Firm Stance on Hormuz Access and Global Stability
Iran Raises Allegations of Ceasefire Breaches as Fragile Truce Faces Early Strain
Trump Offers Two-Week Pause in Military Action Tied to Strait of Hormuz Reopening
US Officials Strike Different Tones as Post-Conflict Messaging on Iran Develops
California Supreme Court Blocks Sheriff’s Attempt to Seize Hundreds of Thousands of Ballots
Trump Administration Set to Reduce Proposed Funding for Iran Conflict Efforts
Washington State Declares Fresh Drought Emergency as Water Shortages Persist
Saudi Arabia Welcomes Trump’s Leadership in Securing US–Iran Ceasefire
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Albanese Welcomes Ceasefire Progress While Addressing Differences with Trump’s Strong Rhetoric
Anthropic’s new model, Claude Mythos, is so powerful that the company is not releasing it to the public - instead, it is forming a coalition of 40 companies for cyber defense
President Trump Addresses Nation with Message of Strength and Strategic Resolve
White House Rejects Claims Trump Considering Nuclear Option in Iran Conflict
White House Says Trump Reviewing Pakistani Proposal With Response Expected
Scrutiny of DHS Spending Sheds Light on Kristi Noem’s Leadership Approach
Kidnapped US Journalist Shelly Kittleson Freed in Prisoner Exchange in Iraq
Army Secretary Signals Stability After Dispute with Pete Hegseth
×