The recent letter from U.S. Senators Jim Banks and Elizabeth Warren to Nvidia CEO Jensen Huang underlines a growing truth of our time: technology is no longer just about business. It is now deeply embedded in questions of national strategy, global influence, and security. 

Issued ahead of Huang’s scheduled visit to China, the letter urges Nvidia to avoid any engagement with Chinese firms linked to military modernisation or listed under U.S. export restrictions. The subtext is clear—America’s technological edge in AI must not become a strategic advantage for its greatest geopolitical rival. 

But the implications of this moment extend far beyond Nvidia or Huang. They speak to how artificial intelligence, semiconductor chips, and global influence have emerged as the new battleground in a Cold War whose rules are still being written. 

Nvidia’s Global Footprint and a Strategic Dilemma 

Nvidia is no longer just a chipmaker. It has become the backbone of AI infrastructure globally. Its GPUs are the gold standard for powering everything from language models like ChatGPT to autonomous vehicles. 

So when Jensen Huang travels to China—a nation at the centre of U.S. tech containment efforts—it is not merely a commercial engagement; it becomes a geopolitical signal. That is why U.S. lawmakers are raising red flags. 

“We are worried that your trip to the PRC could legitimise companies that cooperate closely with the Chinese military,” the senators wrote. 

Their concern is rooted in precedent. In early 2024, U.S. intelligence agencies flagged Chinese firm DeepSeek for allegedly assisting the PLA in AI development by sidestepping chip sanctions. Several Chinese companies are also believed to have trained AI models in third countries like Malaysia, effectively bypassing U.S. restrictions and reimporting the results into China. 

Orwellian Export Controls: Is Containment Working? 

There is more than a hint of irony here. Huang himself has criticised U.S. export restrictions, once calling them “a failure” after the ban on shipping high-end AI chips to China. He has consistently warned that limiting innovation often achieves the opposite—it drives it underground. 

There’s some truth to this. When top-tier chips like Nvidia’s A100 and H100 were restricted, alternative strategies swiftly emerged: modified chips, front companies, and offshore training hubs. It has become a game of technological whack-a-mole—each sanction is followed by a workaround. 

Balancing Economic Reality with Security Risk 

Nvidia is in a uniquely complex position. While it has aggressively grown its footprint in Western markets, China remains a significant customer. In 2023, China accounted for nearly 20% of Nvidia’s data centre revenues. Losing that market could cost the company tens of billions in long-term potential. 

However, the stakes now go beyond quarterly profits. If Nvidia’s technologies are used to enhance China’s military AI capabilities, it becomes a threat not just to the company’s reputation, but to American national security. 

Nvidia’s Response: Technology as Soft Power 

This brings us to a powerful idea—AI as American soft power. By embedding U.S. innovation at the heart of global infrastructure, America ensures that even when others build, they do so atop American foundations. 

This stands in contrast to a more restrictive approach. Instead of locking down technology, the alternative strategy is to outcompete—to remain indispensable, faster, and more advanced. But this vision requires careful calibration. Broad access, without appropriate safeguards, risks irreversible strategic leakage. 

Conclusion 

The letter to Mr. Huang is not just a policy reminder; it is a reflection of how deeply intertwined AI and national security have become. As artificial intelligence begins to define the future of warfare, governance, and economic power, companies like Nvidia can no longer afford to be neutral actors. They are now central figures in a high-stakes geopolitical contest. 

The U.S. must recognise that total decoupling may be unrealistic. The smarter path lies in strategic engagement—allowing global reach while maintaining strong compliance guardrails. In today’s world, AI dictates not just who leads in technology, but who commands the geopolitical balance. 

Who builds what, with whom, and where—these are now the core questions. And the answers will define the next global order.