Nvidia CEO Jensen Huang, addressing the competition it faces in China, has sent a warning saying that it will be foolish to underestimate Huawei. The Chinese telecoms giant is at the centre of ongoing US trade tensions as during the first Trump administration, the US banned federal use of Huawei products and restricted American companies from dealing with the firm over spying concerns.While stating Nvidia is “miles ahead” in the chips race, Haung issued a strong caution against complacency, CNBC reported.“It is foolish to underestimate the might of China and the incredible, competitive spirit of Huawei,” Huang stressed. He praised Huawei’s technical prowess, noting their dominance in 5G technology and their ability to build “amazing chips” and systems like their large-scale AI supercomputing system, CloudMatrix.“This is a company with extraordinary technology. They dominate the world’s 5G telecommunication standards and technology. They build amazing smartphones, they build amazing chips, they’re incredible at networking and so when they announced CloudMatrix, I was not surprised that they were able to create such an amazing thing,” Huang said.“It’s deeply uninformed to think that Huawei can’t build systems,” Huang concluded. “We take competition very seriously. We respect the competition, we respect deeply the capabilities of China. That’s why we run so fast, and that’s why we dedicate ourselves to inventing the future so we can get there before anybody else,” he added.

Huang says ‘China doesn’t want any American chips’

The Nvidia CEO also said that China has plenty of AI chips and the country doesn’t want American AI processors.“China makes plenty of AI chips themselves, and the Chinese military surely have plenty of access to chips that are created in China. So, whatever national security concerns, have to take into consideration the fact that China has blocked H20 [an Nvidia chip] and, so, in a lot of ways, China is saying that, ‘listen, we have plenty of AI technology ourselves’,” Huang told CNBC.“And so the national security concern, from that perspective, I think, is really answered by the fact that China doesn’t want H20 or any American chips,” he added.The Nvidia CEO described the market opportunity in China as “probably $50 billion this year. It’s probably, call it, a couple of 100 billion dollars by the end of the decade.”