Geopolitical Economy Report China is winning AI race, Nvidia says, as OpenAI begs US gov't for bailout
Nov 8, 2025
Nvidia's CEO warns that China may win the AI race, spotlighting the unsustainable AI bubble. OpenAI is seeking government guarantees amid financial woes, asking for federal support as pressure mounts. The discussion includes concerns over monopolistic practices among Silicon Valley giants and the risks of relying on government bailouts. Meanwhile, China's advancements in electricity generation give it a competitive edge, posing a significant challenge to U.S. companies reliant on AI technology.
AI Snips
Chapters
Transcript
Episode notes
NVIDIA Sells The Shovels In AI Gold Rush
- NVIDIA became the biggest AI beneficiary by selling the specialized chips powering the industry wave.
- That makes NVIDIA hugely profitable while most AI startups remain unprofitable and reliant on hype.
Huang Frames China As An Existential Threat
- Jensen Huang warns China is 'going to win the AI race' to pressure U.S. policy and regain market access.
- His claim cites China's lower energy costs and looser regulations as competitive advantages.
Use Government Guarantees To De-Risk Investment
- Build financing structures that include government guarantees to reduce financing costs and raise loan-to-value ratios.
- Use federal backstops to make large chip and data center investments bankable.