London Daily

Focus on the big picture.
Monday, Feb 09, 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
China and UK Signal Tentative Reset with Commitment to Steadier, Professionally Managed Relations
UK Confirms Imminent Increase in ETA Fee to £20 as Entry Rules Tighten
UK Signals Possible Seizure of Russia-Linked ‘Shadow Fleet’ Tanker in Escalation of Sanctions Enforcement
Epstein Scandal Piles Unprecedented Pressure on UK Prime Minister Keir Starmer’s Leadership
UK’s ‘Most Romantic Village’ Celebrates Valentine’s Day and Explores the Festival’s Rich History
The Implications of Expanding Voting Rights to Non-EU Foreign Residents in France
Ghislaine Maxwell to Testify Before US Congress on February 9
Al.com Acquired by Crypto.com Founder for $70 Million
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
US and Iran to Begin Nuclear Talks in Oman
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
NASA allows astronauts to take smartphones on upcoming missions to capture special moments.
Trump administration to launch TrumpRx.gov for direct drug purchases
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
×