- Nvidia CEO Jensen Huang warns of China's big advantages in artificial intelligence
- This is the rapid implementation of data center construction and China's reliable energy infrastructure to meet AI's energy needs.
- Meanwhile, a new study found that Chinese open-source LLM programs accounted for nearly a third of global AI use.
NvidiaCEO Jensen Huang again warned about the rapid progress China is making in artificial intelligence and the advantages the country has in terms of infrastructure for development.
Luck reports Late last month, Huang spoke with John Hamre, president of the Center for Strategic and International Studies (CSIS), noting that: “If you want to build a data center here in the United States, from laying the foundation to moving it forward, [an] The AI supercomputer is probably about three years old. They [China] can build a hospital in a weekend.”
In other words, China is capable of carrying out large construction projects at incredible speed, and also has a great advantage in terms of its energy infrastructure.
These are critical elements for the development of AI in terms of quickly building huge data centers that can handle the data processing needs and having the energy to power it all.
Huang noted that China has “twice the energy we have.” [the US] as a nation, and our economy is bigger than theirs” and that this “doesn't make any sense to me” and furthermore, energy capacity growth in China is moving “straight up” while in the US it remains more or less stable.
However, to balance out the concerns raised, the CEO made it clear that Nvidia is “generations ahead” of China when it comes to AI chip technology – there may be a slight bias in that statement, mind you – but Huang still said that's no reason to rest on his laurels.
Huang previously commented on this China is 'nanoseconds' behind America in the AI racebut we're told Nvidia's CEO remains hopeful about the Trump administration's push to boost investment in artificial intelligence and domestic manufacturing jobs.
Token Efforts and Rapid Ascent
Meanwhile, a separate article from South China Morning Post (SCMP) Statements that almost 30% of global AI use now comes from Chinese open-source models (L.L.M.).
This figure comes from a report compiled by OpenRouter, an independent aggregator of artificial intelligence models, in collaboration with venture capital firm Andreessen Horowitz. It is based on a study of 100 trillion tokens, which are units of data processed by LLM (or, in more friendly parlance, building blocks underlying AI work).
The lion's share remains with Western world LLMs with closed source code, such as ChatGPTwhich own the rest of the market (about 70%).
However, remember that just a year ago Chinese open source LLMs represented just over 1% of tokens, so reaching 30% now is a pretty steep growth trajectory to say the least.
If you take just open source LLMs, we are told that Chinese models average around 13% of weekly token usage, almost matching the 13.7% that is used in the rest of the world. (Remember that this is an open source use: the remaining majority are proprietary closed source models such as ChatGPT).
Another interesting point brought to light here is that open source LLMs from China are now equally playing a role, and it's not just DeepSeek (as it was initially). Naturally, DeepSeek V3 is the main force in the use of artificial intelligence in China, but there are also Alibaba's Qwen and Moonshot AI's Kimi K2 that are big players.
The report claims that Chinese tooltips now rank second in terms of token volume after English.
When you tie it all together, China's rise in artificial intelligence is quite a meteoric rise, and you can see where Huang's concerns come from. Especially since it's hard to see this growth slowing down in the near future for China, and having Nvidia's CEO oversee the country's energy infrastructure is indeed a clear advantage over the US – again, hard to see changing in the near future.
And then, as we recently saw with the release New models DeepSeek v3.2Additionally, there is something that China can offer in terms of reducing the costs of using AI. It would seem that there is a serious competition ahead for global dominance in the field of AI.
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