(MENAFN) The CEO of American technology powerhouse Nvidia has cautioned that the United States is lagging in artificial intelligence, with China positioned “to win the AI race,” according to The Financial Times on Wednesday.

Jensen Huang remarked that Western nations, including the US and the UK, are hindered by “cynicism” and emphasized the need for “more optimism” at The Financial Times’ Future of AI Summit.

He expressed concern over new AI regulations at the US state level, which could result in “50 new regulations.”

Huang contrasted this with Chinese energy subsidies, which reduce costs for domestic companies to produce alternatives to Nvidia’s AI chips, stating: “Power is free.”

These comments come as the Trump administration continues to prohibit sales of Nvidia’s most sophisticated chips to China, even after a recent meeting between US President Donald Trump and Chinese leader Xi Jinping.

Huang had previously warned that the newest US AI models barely surpass Chinese counterparts and urged authorities to open the market to Nvidia chips, in order to maintain global reliance on American technology.

Following his meeting with Xi last month, Trump declared that China would not gain access to Nvidia’s cutting-edge Blackwell chips, telling a news agency: “The most advanced, we will not let anybody have them other than the United States.”

White House spokesperson Karoline Leavitt reiterated on Tuesday: "As for the most advanced chips, the Blackwell chip, that's not something we're interested in selling to China at this time."

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