China 'nanoseconds behind' US in chip technology: Jensen Huang
What's the story
Jensen Huang, the CEO and founder of US-based chipmaker NVIDIA, has said that China is "nanoseconds behind" the United States in chip technology. He made these comments while speaking on a podcast hosted by tech investors Brad Gerstner and Bill Gurley. Huang emphasized China's rapid progress in this field and its manufacturing capabilities.
Global competition
Allow US firms to compete in China, NVIDIA CEO says
Huang also advocated for allowing US companies like NVIDIA to compete in China. He said this would be in the best interest of both Beijing and Washington, as it would "proliferate the technology around the world" and maximize America's economic success and geopolitical influence. The tech mogul stressed that China has a vast talent pool, a strong work ethic, and healthy internal competition among its provinces.
Investment prospects
Hope China remains open to foreign investment
Huang expressed his hope that China would continue to be open to foreign investment. He noted that Beijing has promised to keep "an open market." "What's in the best interest of China is for foreign companies to invest in China, compete in China and for them to also have vibrant competition themselves," he said on the podcast.
Market challenges
NVIDIA's GPUs are backbone of AI model training
NVIDIA's graphics processing units (GPUs) are considered the backbone of artificial intelligence model training and operation. This has driven the company's market capitalization to record highs. However, sales to China, one of the world's biggest markets, have been disrupted by geopolitical tensions. Earlier this year, the US suddenly banned exports of H20, a downgraded chip designed to comply with restrictions before relenting after a 15% levy was agreed upon with the US government.