London Daily

Focus on the big picture.
Thursday, Sep 24, 2026

Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower

Jensen Huang urges the U.S. to treat artificial intelligence as a national strategic priority. According to him, China is aggressively investing in technology and talent – and has no intention of slowing down. "If the U.S. doesn’t respond with similar investments, it could lose its technological edge."
Jensen Huang, CEO of tech giant Nvidia, issued a stark warning over the weekend, urging American policymakers to adopt a "long-term strategic priority" for artificial intelligence. This, he stressed, should include national investment in developing an AI-focused workforce. "Fifty percent of AI researchers worldwide are Chinese, and China is far from lagging behind in the race," Huang emphasized. "This must impact how we think about the game."

Speaking at the Hill & Valley Forum in Washington, Huang — whose company manufactures the chips powering most advanced AI applications — stated, “To lead, the U.S. must embrace the technology, invest in re-skilling, and equip every worker with the knowledge required to use it.” He added in a briefing with reporters that while China may still be trailing the U.S. in the AI race, the gap is narrow: "They’re right on our heels."


Huawei Is Rising Fast
Huang specifically addressed China’s tech giant Huawei, which is currently under U.S. sanctions: “It’s one of the most formidable tech companies in the world, and they’ve made huge strides in recent years.” He revealed that Huawei is already developing its own AI chips for Chinese clients.

A Huawei store in Shenzhen is symbolic of the country's determination. "The Chinese have no intention of stopping," Huang noted.


Export Restrictions Are Hurting Nvidia
Nvidia has emerged as one of the biggest casualties of the escalating U.S.–China tech tensions, particularly concerning AI chip exports. Although it initially appeared the company might weather the storm, the export restrictions imposed by the Trump administration have significantly damaged sales of Nvidia’s H20 processors to China — critical chips used for AI development, research, and training.

The company estimates its earnings could take a hit of around $5.5 billion due to these restrictions. According to Nvidia, the U.S. measures are counterproductive: they are likely to push Chinese companies — especially Huawei — to accelerate the development of local alternatives, increase their investment in AI chip innovation, and make their technology more competitive, ultimately reducing reliance on Western suppliers. “We are risking our own advantage,” Huang warned.

Earlier this month, it was reported that Huang raised his concerns about China's rapidly growing AI capabilities — particularly Huawei’s — in a closed-door meeting between Nvidia executives and the U.S. House Foreign Affairs Committee.

A source from the meeting revealed that company executives argued that if DeepSeek R1 — a high-performing AI model developed by Chinese firm DeepSeek — had been trained on Huawei chips instead of Nvidia’s, it could have triggered a global surge in demand for Chinese-made chips.


AI: The New Industrial Revolution
In his remarks in Washington, Huang compared the current AI revolution to the Industrial Revolution. He said the United States historically succeeded because it “harnessed energy faster than any other nation” — rather than focusing on the displacement of workers. In that spirit, Nvidia recently announced a $500 billion investment plan for AI infrastructure in the U.S. over the next five years, which includes building an AI server factory near Houston in collaboration with Foxconn.

Despite his forecast that AI will eventually replace a large portion of today’s jobs, Huang does not share the widespread concern over worker displacement. According to him, the nature of work will evolve. At Nvidia’s recent conference in San Jose, he even predicted a global shortfall of at least 50 million workers by the end of the decade and unveiled Groot N1 — a foundational model for humanoid robots designed to help bridge that labor gap.
Newsletter

Related Articles

0:00
0:00
Close
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×