Nvidia CEO Jensen Huang Downplays US Fears of Chinese Military Using Chips

Nvidia CEO Jensen Huang downplayed US concerns that China's military will use his firm's chips, saying they don't need US technology to build their military. Huang criticized US export controls, arguing they are counterproductive to US tech leadership and have cut Nvidia's China market share nearly in half. He will meet with Trump before traveling to China for his second trip this year.

Nvidia CEO Jensen Huang recently addressed concerns about China's military using the company's advanced AI chips, stating that the risk is low. Speaking on CNN's Fareed Zakaria GPS broadcast, Huang emphasized that the Chinese military is unlikely to rely on US technology due to the associated risks [1].

Huang's comments come as the US has imposed increasing restrictions on technology exports to China, citing national security concerns. These restrictions have significantly impacted Nvidia's revenue, particularly from the Chinese market. The company's market share in China has nearly halved due to these export controls [2].

Despite the challenges, Huang remains optimistic about the Chinese market's potential. He is set to hold a media briefing in Beijing on July 16, his second visit to the country this year. This trip follows a meeting with President Donald Trump last week, where Huang reiterated his case for increased access to the Chinese market [2].

Huang's visit to China coincides with a bipartisan letter sent to him by two US senators, urging him to abstain from meeting with companies involved in military or intelligence activities in China. The letter also asked Huang to refrain from meeting with entities on the US restricted export list [2].

Nvidia's market value recently topped $4 trillion, reflecting its dominance in the AI technology sector [2]. However, the company has faced increased competition from Chinese tech giants like Huawei, which are also developing AI capabilities [2].

The AI chip market is projected to reach $563 billion by 2028, with Nvidia being the biggest beneficiary of this growth [3]. Despite near-term geopolitical risks, Nvidia's long-term prospects remain strong, driven by its product leadership, attractive valuation, and strategic partnerships with major tech companies [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-13/nvidia-s-huang-says-china-s-military-unlikely-to-use-us-ai-chips
[2] https://www.business-standard.com/technology/tech-news/nvidia-ceo-jensen-huang-to-hold-media-briefing-in-beijing-on-july-16-125071300549_1.html
[3] https://www.ainvest.com/news/goldman-sachs-initiates-coverage-nvidia-buy-rating-185-price-target-2507/