Leaders in Silicon Valley technology, including Nvidia, a front-runner in artificial intelligence (AI) chips, and OpenAI, the developer of ChatGPT, warned that the United States' semiconductor regulations against China could paradoxically become a self-defeating move that enhances China's AI technology. As China’s technology springboard continues, with AI startup DeepSeek introducing low-cost, high-performance AI models that circumvent U.S. sanctions, big tech corporations are demanding more flexible policies from the Trump administration.
◇ “The more you try to block it, the more China grows”
On the 8th (local time), key executives from OpenAI, AMD, and Microsoft (MS) attended a Senate hearing, collectively stating that to win the AI competition against China, the U.S. must ease AI semiconductor export restrictions and spread AI technology worldwide.
Lisa Su, AMD's Chief Executive Officer (CEO), said, “While I fully understand the importance of national security, if our technology is not adopted in other parts of the world, another technology will eventually emerge.” She added, “Currently, technologies from other countries are less developed but will mature over time.” Due to the export restrictions imposed by the Trump administration last month, AMD, along with Nvidia, is effectively unable to export advanced AI chips to China.
Brad Smith, president of Microsoft, noted, “The key factor in determining whether the U.S. will win in the AI competition or whether China will prevail is which country’s technology is more widely adopted globally.” He added, “The lesson from Huawei and the 5G case is that it is difficult to dislodge the one that first captures the market.”
China’s largest telecommunications equipment company, Huawei, rapidly expanded its global market share by supplying equipment to various countries with its 5G technology. Huawei symbolizes China's semiconductor ascendancy. As it directly develops advanced AI semiconductors, it is speeding up its semiconductor independence and is expected to mass supply next-generation AI semiconductors to domestic corporations. Smith expressed concerns in his written testimony that “export limitations on American-made AI chips will lead foreign corporations to seek Chinese substitutes.”
◇ “Does the U.S. stay ahead of China in AI competition?… The gap is not large”
Silicon Valley tech leaders emphasized that it is only a matter of time before China catches up to U.S. AI technology. They called for a reduction in barriers that hinder global expansion, such as the Trump administration’s tariff policy and export controls. Sam Altman, CEO of OpenAI, responded to the question of “Which side, the U.S. or China, holds an advantage in the AI competition?” by saying, “It’s difficult to say exactly how far ahead we are (of China), but I believe the gap is not large.” He further stated, “That’s why the U.S. needs reasonable regulations that do not hinder growth.”
Altman said, “The iPhone is the most preferred mobile device among people worldwide, and Google is the most used search engine, which shows the tremendous influence and power the U.S. has. Thus, technologies like chips and other infrastructure are equally important, and making sure that U.S. technology is as widely adopted globally as possible should be our goal.”
Jensen Huang, CEO of Nvidia, has also asserted in several public settings that “China has not fallen behind the U.S. in the AI field.” At a conference on the 6th, he stated, “Huawei is one of the most formidable technology companies in the world,” adding, “If we completely withdraw and do not supply products to a specific market, Huawei will take that position.” He projected, “While our exports to China are restricted, the Chinese market will likely grow to about $50 billion (approximately 69 trillion won) in a few years.”
Amid the criticism from big tech leaders, the Trump administration is showing signs of seeking to repeal the AI chip export restrictions announced at the end of the previous Biden administration and undertake a complete overhaul of semiconductor sanctions. Reports indicate that instead of controlling AI semiconductor exports by country rating, the government is considering replacing this with bilateral negotiations between governments. This is interpreted as a strategy for the U.S. government to secure greater leverage in trade negotiations.