Nvidia CEO Downplays U.S. Concerns Over China Military Chip Use Amid Export Restrictions

Nvidia CEO Jensen Huang has downplayed U.S. concerns about the use of the company's chips in China's military, stating that the PRC military will not rely on U.S.-made technology. Huang emphasized that China has sufficient computing power and does not need Nvidia chips or U.S. technology stacks to develop its military capabilities. This statement comes amidst ongoing U.S. restrictions on semiconductor exports to China, which have been in place for several years. The latest barriers, introduced in April, forced Nvidia to obtain a license to export H20 chips and develop a lower-priced AI chipset for the Chinese market.

Despite the restrictions, Nvidia has incurred significant expenses due to excess H20 inventory and missed out on potential sales. However, the company has reached a $4 trillion market capitalization, becoming the first in history to achieve this milestone. Huang criticized the U.S. export controls, arguing that they undermine the goal of maintaining U.S. leadership in technology. He stressed the importance of collaborating with AI developers worldwide, including those in China, to make the U.S. technology stack the global standard.

Huang's comments come ahead of his second trip to the PRC this year. He previously met with President Donald Trump at the White House, where U.S. lawmakers warned him against meeting with companies linked to China's military or intelligence agencies. Meanwhile, AI startup DeepSeek has been reported to be assisting China's military and intelligence operations. According to a State Department source, DeepSeek has provided support to these operations and is attempting to access high-tech and restricted semiconductors through shell companies in Southeast Asia. The firm is also mentioned in procurement records for the Chinese People's Liberation Army (PLA) and other defense-related organizations.

China views artificial intelligence as a crucial factor in future conflicts and aims to transition to "intelligentized" warfare. Key areas of focus include autonomous weapons, intelligence and surveillance, cyber operations, and command and communications systems. The development of military AI in China involves close cooperation between the government and private sector, with key players including Norinco, China Electronics Technology Group Corporation (CETC), Baidu, SenseTime, and iFLYTEK. These companies are involved in various AI technologies, from robotics and autonomous platforms to computer vision and speech recognition.

Funding for military AI programs in China is partially classified, but estimates suggest significant investment. A study by the PLA's Center for Security and Emerging Technologies indicated a minimum of about $1.6 billion per year for procuring systems with AI elements. The actual costs are likely higher due to hidden investments in R&D and classified programs. Both China and the U.S. are engaged in an AI arms race, with China rapidly deploying AI in various military applications to catch up with or surpass the U.S. However, the U.S. still leads in several critical technologies and is taking steps to maintain its advantage.