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Jensen Huang Walks Back 'China Will Win AI' Line as Power, Policy and Financing Risks Take Center Stage

Fresh comments from Microsoft plus OpenAI spotlight power shortages as the binding constraint on scaling advanced AI.

Overview

  • After the Financial Times quoted Nvidia’s CEO saying “China is going to win the AI race,” Huang issued a later statement calling China “nanoseconds behind” and urging the U.S. to “race ahead,” a swing that briefly moved Nvidia’s shares before a partial rebound.
  • Microsoft’s Satya Nadella said chips are not the bottleneck, citing a lack of electricity and ready data‑center “warm shells,” with GPUs sitting idle due to insufficient power capacity.
  • The White House reiterated it is not allowing sales of Nvidia’s most advanced Blackwell chips to China, underscoring export‑control headwinds even as Nvidia recently touched a $5 trillion valuation before pulling back.
  • OpenAI’s Sam Altman said the company does not want government guarantees for data centers, projected an annualized revenue run rate above $20 billion this year, and flagged plans tied to about $1.4 trillion in commitments over eight years.
  • Analysts and executives cautioned that massive AI infrastructure spending faces uncertain economics, with concerns over chip lifecycles, vendor‑financing structures, and signs of slowing enterprise adoption.