On Friday, investor Kevin O’Leary issued a stark warning that China's sweeping power capacity—not chips—now poses the biggest threat to the U.S.'s position in the global AI race.
O'Leary Says China's Energy Build-Out Gives It AI Edge
While sharing a clip of his Fox News appearance on X, formerly Twitter, O'Leary said the U.S. is at risk of falling behind China in AI because of one critical factor: electricity.
In the video, he said China's speed in building power infrastructure has given it a decisive advantage as AI development accelerates worldwide. "The Chinese are kicking our a** right now. In AI, they are."
"I'm neck-deep in building data centers right now, and let me tell you something uncomfortable: China is crushing us in power generation for AI," O'Leary said on X, adding, "Not chips. Power."
He argued that China can rapidly add new coal plants without facing regulatory hurdles, while U.S. projects often stall for years.
"When the Supreme Leader wants more capacity, he builds a coal plant. Simple. No 5-year regulatory nightmare," he said.
He added that America's grid is "tapped out" and slowing AI growth.
Big Tech Splits With Nvidia As Washington Considers New Export Limits
O'Leary's warning comes as U.S. lawmakers advance the Gain AI Act, which would tighten restrictions on exporting advanced AI chips to China and other nations under arms embargoes.
Microsoft Corp (NASDAQ:MSFT) has endorsed the bill, while Amazon.com, Inc.'s (NASDAQ:AMZN) cloud unit has reportedly privately signaled support to Senate staffers.
Their position marks a rare public break with Nvidia Corp (NASDAQ:NVDA), the dominant supplier of AI processors powering both companies' cloud infrastructure.
Nvidia countered the proposal in a statement to Benzinga, calling it a "self-defeating policy" rooted in science fiction.
The company said it already avoids selling restricted products to adversaries and warned that limiting global access could undermine President Donald Trump's AI Action Plan.
Nvidia's China Market Has Collapsed, CEO Warns
Nvidia CEO Jensen Huang has repeatedly cautioned that China's AI capabilities could catch up due to cheaper power and fewer regulatory barriers.
He said earlier this month that China could win the AI race, citing its low-cost, heavily subsidized power and fast-moving regulatory system.
He said earlier this year that Nvidia's market share in China fell from roughly 95% to almost nothing after U.S. export rules tightened and Beijing barred foreign AI chips from state-funded data centers.
Benzinga's Edge Stock Rankings place the company in the 98th percentile for Growth and 93rd for Quality, highlighting its strong performance relative to industry peers.
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