NVIDIA CEO Says China Doesn’t Need U.S. AI Chips for Military Power

NVIDIA CEO Jensen Huang is stirring the pot again – this time by claiming that China doesn’t need American AI chips for military strength. In a recent interview with CNN, Huang stated that China’s homegrown technology is more than capable of handling military needs without NVIDIA’s cutting-edge hardware.

This statement, however, comes as the company is pushing hard to maintain its presence in the Chinese market amidst U.S. export restrictions.

According to Huang, China has already built a powerful supercomputing infrastructure using its own engineers and technologies. “There’s plenty of computing capacity in China already,” he said, implying that the People’s Liberation Army (PLA) doesn’t need NVIDIA’s chips or U.S. tech to advance its defense capabilities.

These remarks come amid growing scrutiny from the U.S. government, particularly regarding China’s alleged use of AI in military applications and reports of Beijing working with companies like DeepSeek – a firm reportedly deploying thousands of NVIDIA AI chips. Washington sees AI as a strategic asset, and restricting its export has become a key tool in curbing China’s technological rise.

Yet the situation is full of contradictions. While Huang argues China doesn’t need NVIDIA, reports continue to surface about Beijing acquiring the company’s chips through intermediaries in Southeast Asia and even via smuggling operations. There’s even speculation about China building a hyperscale data center rumored to use more than 100,000 NVIDIA chips – despite the export ban.

NVIDIA, meanwhile, finds itself walking a diplomatic and economic tightrope. The company can’t afford to lose China, a market that’s been crucial to its growth. While its recent earnings projections removed China from the spotlight, it’s clear the company is still keen to stay in the game. Plans are underway to introduce a toned-down version of the Blackwell chip for the Chinese market, optimized for inference tasks and less likely to fall under export bans.

Huang’s statements could be seen as an attempt to both downplay the military relevance of NVIDIA’s chips and smooth the path for regulatory approval. Whether it’s enough to sway policymakers or convince critics at home remains to be seen.