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On Thursday, White House AI and crypto czar David Sacks urged Washington to update export control policies, warning that restricting U.S. companies like Nvidia Corp. (NASDAQ:NVDA) from selling chips abroad could hand Chinese companies such as Huawei Technologies the advantage in the global race for artificial intelligence dominance.
In a post on X, Sacks said two developments in China this week underscore the urgency: Huawei unveiled a new AI chip to compete with Nvidia and Beijing ordered domestic companies to stop buying certain Nvidia processors.
“Taken together, the message is clear: China is not desperate for our chips,” Sacks wrote. “It is producing its own and intends to compete globally in the semiconductor market.”
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While acknowledging that Nvidia still holds a substantial lead, he noted Huawei is compensating for weaker chips by clustering them in large networks.
He cautioned, “Excessive bureaucratic delays are a gift for Huawei, which will fill out purchase orders as American companies fill out forms.”
Huawei has disclosed long-term chip plans for the first time, announcing its Ascend AI chips and Kunpeng server processors will follow a one-year release cycle, doubling compute power with each iteration, reported Reuters.
Rotating chairman Eric Xu also said the company has developed proprietary high-bandwidth memory, a technology previously dominated by South Korea’s SK Hynix and Samsung Electronics Co. (OTC:SSNLF).
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At the same time, the Cyberspace Administration of China directed major tech firms, including ByteDance and Alibaba Holdings (NYSE:BABA) to end testing and orders of Nvidia’s RTX Pro 6000D, a chip specifically designed for China to comply with U.S. restrictions, according to the Financial Times.
Market commentators pushed back on claims that Huawei is surpassing Nvidia.
Earlier, CNBC’s Mad Money host Jim Cramer criticized Chinese media reports, saying, “If their chips were so great everyone would use them.”
Daniel Newman, CEO of Futurum Group, has similarly called the idea that China can move on without Nvidia “next-level nonsense.”
Previously, Nvidia CEO Jensen Huang had called Huawei formidable, though Huawei’s own founder Ren Zhengfei has admitted the company still trails U.S. chip technology.
Photo courtesy: Chung-Hao-Lee / Shutterstock
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This article White House AI Czar David Sacks Warns Washington Must Let US Chipmakers Like Nvidia Sell Abroad Or Risk Forfeiting AI Race To Huawei And China originally appeared on Benzinga.com
