In a confidential meeting with members of the U.S. House of Representatives Foreign Affairs Committee, Nvidia CEO Jensen Huang expressed apprehensions regarding Huawei Technologies Co.'s burgeoning artificial intelligence capabilities, an insider revealed. Discussions revolved around Huawei's proprietary AI chips and the potential implications of restrictions on Nvidia's chips in China, which could inadvertently bolster Huawei's competitive edge.
According to a high-ranking staff source present at the meeting, there was particular focus on the impact of Huawei's AI chips, including the possibility that the utilization of tools like the DeepSeek R1 model or future Chinese open-source alternatives specifically tailored for Huawei's chips might create a strong global demand for Huawei's technology.
Nvidia's spokesperson, John Rizzo, confirmed the meeting, stating that Jensen had emphasized the critical role of AI as a national infrastructure and underscored the necessity of investing in domestic manufacturing. Rizzo further highlighted Nvidia's unwavering support for the U.S. government's initiatives aimed at advancing American technology and safeguarding national interests globally.
Despite facing U.S. export controls dating back to the Trump administration, Nvidia has adapted by developing chips compliant with evolving regulations. However, recent developments saw the company being directed by the Trump administration to halt sales of its latest China-focused chip, the H20. Chinese clientele, drawn by cost-effective AI models like DeepSeek, had been increasingly seeking Nvidia chips, leading to a surge in orders.
In response to Nvidia's limitations in the Chinese market, Huawei has reportedly positioned itself to fulfill the resulting void, actively preparing for large-scale distribution of a chip vying to rival Nvidia's product lineup. As the race for dominance in the AI chip sector intensifies, strategic maneuvers by key players such as Nvidia and Huawei are reshaping the competitive landscape of the industry.