Nvidia's Jensen Huang: China Doesn't Need US Chips

Nvidia Corp. NVDA CEO Jensen Huang said that the Chinese military is not using his company's chips due to export controls and tensions between the U.S. and China. 

The Details: Speaking in a CNN interview on Sunday, Huang argued that China cannot depend on U.S.-made technology for its military needs because access to such technology could be restricted at any time. 

"It could be limited at any time; not to mention, there's plenty of computing capacity in China already," Huang said. 

"They don't need Nvidia's chips, certainly, or American tech stacks in order to build their military," he added.  "They simply can't rely on it."

Read Next: UnitedHealth Hits Reset: New Head Of Medicaid Appointed As CEO Reshapes Team 

Huang's remarks come in the context of U.S. export controls that restrict semiconductor firms from selling their most advanced AI chips to Chinese customers. 

The Nvidia CEO reiterated his criticism of the export restrictions, saying they have been counterproductive to the United States' goal of maintaining technological leadership. 

According to Huang, for American technology to become the global standard, it must be accessible to all AI developers worldwide—including those in China, who make up about half of the global talent pool.

Industry analysts, such as Daniel Newman of The Futurum Group, note that Huang is carefully balancing relations between Washington and Beijing with an approach designed to keep Nvidia positioned for future opportunities in China while avoiding actions that could provoke U.S. policymakers.

"He needs to walk a proverbial tightrope to make sure that he doesn't rattle the Trump administration," Newman told CNBC. 

Why It Matters: Last month, a senior U.S. government official told Reuters that Chinese AI firm DeepSeek is actively supporting China's military and intelligence agencies while finding ways to bypass American restrictions on advanced semiconductor exports. 

DeepSeek is alleged to have used shell companies in Southeast Asia and other workarounds to obtain large quantities of Nvidia's H100 chips, which are subject to strict export controls. Multiple sources familiar with the situation confirmed that DeepSeek acquired these chips after the U.S. ban was implemented.

What Else: Huang is preparing to leave on his second trip to China this year as Nvidia works on a new chip that will meet the latest export rules. 

Last week, Huang also met with President Donald Trump and was warned by lawmakers not to meet with Chinese companies tied to the military or intelligence agencies, or those on the U.S. restricted list.

NVDA Price Action: Nvidia shares were up 0.12% at $165.12 on Monday, according to Benzinga Pro. 

Read Next: 

• Get Ready For 800 Hours Of Blackouts, Trump’s DOE Warns 

Photo: Shutterstock