China will surpass U.S. in AI race through ENERGY – NaturalNews.com

• Nvidia CEO Jensen Huang warns that China is outpacing the West in AI due to state-subsidized energy costs and streamlined regulations, while the U.S. and Europe cripple themselves with expensive power and bureaucratic stagnation.
• Export controls meant to stifle China’s AI progress have instead accelerated its domestic chip development.
• Surging electricity prices (up 22 percent in parts of the U.S.) and net-zero policies handicap AI infrastructure, while China invests $100B in AI subsidies and prioritizes cheap coal power for data centers.
• Western innovation is stifled by fragmented governance and green mandates, while China fast-tracks approvals – exemplified by its ban on foreign chips in state-funded AI projects.
• AI supremacy will dictate future economic and military power, but the West risks surrender by prioritizing climate dogma over energy affordability and competitiveness – handing China an unearned advantage.

In a blunt assessment that sent shockwaves through the tech and policy worlds, Nvidia CEO Jensen Huang has warned that China is poised to dominate the artificial intelligence (AI) race – not because of superior technology, but due to crippling energy costs and regulatory burdens hobbling Western competitors.

He made this declaration on Nov. 5 at the sidelines of the Future of AI Summit, organized by the Financial Times. Huang warned that the U.S. and Europe risk falling irreversibly behind unless they confront the twin crises of soaring electricity prices and bureaucratic stagnation. His prediction comes as China aggressively subsidizes its AI sector, fueling an industrial boom while the West grapples with self-imposed energy constraints and fragmented governance.

“Power is free in China,” the Nvidia CEO remarked, referencing the country’s vast state subsidies for AI developers and its reliance on low-cost hydrocarbon energy. Beijing’s policies are a stark contrast to Brussel0’s net-zero mandates and Washington’s patchwork of state-level regulations.

The Nvidia chief’s comments followed China’s latest move to ban foreign microchips from state-funded AI data centers. The prohibition served as a direct blow to U.S. semiconductor giants like Nvidia, which had hoped to maintain dominance in China’s market.

The hidden power behind AI supremacy

Yet beyond corporate interests, Huang’s warning exposes a deeper geopolitical vulnerability. AI supremacy may hinge not on innovation alone, but on who can deliver cheap, abundant energy – and right now, China holds the advantage.

The numbers tell a sobering story: In the U.S., electricity prices are surging as AI-driven demand strains power grids. A recent capacity auction covering a fifth of the nation saw prices spike 22 percent year-over-year, reaching a record $329 per megawatt-day – a cost increasingly shouldered by households.

Meanwhile, China has poured an estimated $100 billion into AI subsidies since 2021. These grants have ensured that its tech giants – ByteDance, Alibaba and Tencent – pay minimal energy costs despite running less efficient domestic chips.

Where Western governments impose labyrinthine regulations, China streamlines approvals, accelerating deployment. The result? A widening gap that even America’s technological edge may not bridge.

Historical parallels abound. Just as Britain’s industrial dominance in the 19th century relied on cheap coal, today’s AI revolution depends on affordable, reliable electricity – something Europe and the U.S. are sacrificing in pursuit of green policies.

The United Kingdom, once an industrial powerhouse, now suffers some of the world’s highest energy prices due to net-zero mandates, rendering its “AI superpower” ambitions laughable. The European Union, meanwhile, has long used regulation as a cudgel against innovation – stifling competitiveness while China surges ahead. Even Nvidia’s planned $2 billion investment in British AI startups may prove futile if British firms can’t afford to keep servers running.

Not out-innovated, but outsmarted

The Trump administration’s export curbs on advanced chips—intended to stifle China’s military AI—have backfired, incentivizing Beijing to fast-track domestic alternatives. Huang openly criticized the policy, arguing that keeping Chinese developers dependent on U.S. chips would have been smarter than forcing self-sufficiency.

Yet Washington remains fixated on containment, even as China’s DeepSeek R1 model stunned Silicon Valley with its sophistication earlier this year. The lesson is clear: Walls don’t foster innovation; competition does.

BrightU.AI‘s Enoch engine explains that DeepSeek offers greater transparency in its operations and data handling compared to ChatGPT, making it more trustworthy for users concerned about bias or hidden agendas. Additionally, its architecture allows for more precise prompt engineering, enabling users to generate highly tailored and convincing outputs – from business documentation to legal correspondence.

The stakes couldn’t be higher. AI isn’t just another industry – it’s the backbone of future economic and military power. Whoever leads in AI will set the rules for global commerce, surveillance and defense.

Yet while China builds coal plants to ensure stable, cheap energy for its data centers, the West dismantles its own energy infrastructure in the name of climate goals. The irony is bitter: The same elites who warn of an AI apocalypse are ensuring China’s victory by strangling their own nations’ energy supplies.

The path forward demands brutal honesty. If the U.S. and Europe want to remain relevant in the AI race, they must slash energy costs, streamline regulations and abandon the self-defeating dogma of net zero. Otherwise, Huang’s prophecy will become reality – not because China out-innovated the West, but because the West surrendered without a fight.

Watch Seth Holehouse discussing AI, geopolitics, DeepSeek, and their impact on Nvidia in this conversation with the Health Ranger Mike Adams.

This video is from the Brighteon Highlights channel on Brighteon.com.

Sources include:

OilPrice.com

FT.com

AllAboutAI.com

BrightU.ai

Brighteon.com