Nvidia CEO Jensen Huang has claimed that China is set to overtake the US in the race for AI dominance.

Speaking at the Financial Times Future of AI Summit in London, Huang said lower energy costs, government subsidies and looser regulations were giving China a decisive edge.

“China is going to win the AI race,” he told the FT, contrasting Beijing’s supportive policies with what he called growing “cynicism” and overregulation in the West.

The comments come as tensions between the US and China escalate over access to Nvidia’s high-end AI chips.

The Trump administration recently confirmed a ban preventing the California-based company from selling its advanced Blackwell processors to China, citing national security concerns.

Huang argued that such restrictions are self-defeating, warning that blocking exports could accelerate China’s push for self-sufficiency in semiconductors.

“If China can’t buy Nvidia chips, it will build its own, and fast,” he said.

Chinese tech giants including Alibaba, Tencent and ByteDance have reportedly received fresh energy subsidies to power massive data centres using locally made chips from Huawei and Cambricon.

Despite being less efficient than Nvidia’s, these systems are improving rapidly, with Chinese models like DeepSeek already rivaling US AI capabilities.

Huang also warned that fragmented state regulations in the US could result in “50 new AI laws”, stifling innovation and increasing costs.

By contrast, China’s “free power” and national-scale coordination, he said, were creating a more conducive environment for rapid AI expansion.

Nvidia, now valued at over US$5 trillion, has become central to the global AI race, with its GPUs powering most large-scale AI models.

While Huang later clarified that he wants America to “win by racing ahead”, his remarks highlight growing frustration across Silicon Valley over the US government’s restrictive trade policies.