NVIDIA raises concerns about Huawei's AI growth

President Donald Trump continues to push the U.S. tech companies to increase local manufacturing with a higher tariffs policy. Among them is NVIDIA, which committed to investing $500 billion over the next four years to expand AI chip production. While NVIDIA has agreed to Trump’s policy, the company’s CEO raised concerns about how the US chip restriction is indirectly helping Huawei take a lead in the AI industry.

NVIDIA’s CEO shares concerns about US sanctions indirectly boosting Huawei’s position in the AI industry

According to last week’s Reuters report, Huang raised concerns about Huawei’s success in the AI field despite stringent US sanctions. Per the report, the US House of Representatives Foreign Affairs Committee held a private meeting with a few NVIDIA executives to discuss various topics. One of the majorly discussed topics was Huawei’s constant growth in the manufacturing of AI chips.

Addressing his concerns, NVIDIA’s CEO reportedly said that “restrictions on Nvidia’s chips in China could make Huawei chips more competitive in the market.” One senior committee added, “If DeepSeek R1 had been trained on (Huawei chips) or a future open-source Chinese model had been trained to be highly optimized to Huawei chips, that would risk creating a global market demand for Huawei chips.”

NVIDIA’s spokesperson, John Rizzo, said that Huang met with the lawmakers to discuss a lot of things. Huang reportedly discussed analyzing the strategic importance of AI in the US infrastructure and local manufacturing. Rizzo further noted that NVIDIA is doing its every bit to comply with the US chip restriction. The company also fully supports President Trump’s approach to boost American tech through local manufacturing.

It’s worth noting that the NVIDIA CEO believes Huawei is powerful. In an interview dated April 30, the CEO talked about Huawei’s place in the Chinese AI market. Huang said that the AI competition is a “protracted war” that can’t be won overnight. The CEO further noted that Huawei has come a long way and is quite strong in computing, networking, and software. This is why the NVIDIA CEO is concerned about Huawei taking the lead in the AI competition.

NVIDIA can’t sell its H20 chips in China

Chinese lawmakers have restricted many tech companies, including NVIDIA, from supplying advanced AI chips and products in the country. This comes as a result of US sanctions on China. This is why NVIDIA had to manufacture China-specific chips called H20. After recent policy changes introduced by President Trump, NVIDIA can’t even sell those chips to China. Huawei took this opportunity to fill the gap left by NVIDIA and is reportedly preparing to ship Ascend 910C AI chips.

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