According to Nvidia's CEO Jensen Huang, China's real threat in the AI race isn't just its technology but its centralized ability to bypass the state-by-state regulations and power constraints bogging down US companies. While the US debates 50 legislative frameworks, China rapidly deploys infrastructure, creating a significant speed advantage.

Jensen Huang's core strategy is to be a market creator, not a competitor. He actively avoids "red ocean" battles for existing market share, focusing instead on developing entirely new technologies and applications, like parallel processing for gaming and then AI, which established entirely new industries.

When market leader NVIDIA felt compelled to publicly tweet about its competitive strength against Google's TPUs, it was perceived as a sign of insecurity. Confident leaders typically let their earnings and products speak for themselves, making the defensive communication a worrying indicator of their internal sentiment.

Jensen Huang criticizes the focus on a monolithic "God AI," calling it an unhelpful sci-fi narrative. He argues this distracts from the immediate and practical need to build diverse, specialized AIs for specific domains like biology, finance, and physics, which have unique problems to solve.

Despite powering the AI revolution, Jensen Huang's strategy of selling GPUs to everyone, rather than hoarding them to build a dominant AGI model himself, suggests he doesn't believe in a winner-take-all AGI future. True believers would keep the key resource for themselves.

Instead of competing for market share, Jensen Huang focuses on creating entirely new markets where there are initially "no customers." This "zero-billion-dollar market" strategy ensures there are also no competitors, allowing NVIDIA to build a dominant position from scratch.

Following Peter Thiel's theory, dominant companies like Nvidia publicly frame their market as "incredibly competitive" to avoid antitrust scrutiny. In contrast, companies in competitive markets pretend to have a monopoly to attract investors.

A key component of NVIDIA's market dominance is its status as the single largest buyer (a monopsony) for High-Bandwidth Memory (HBM), a critical part of modern GPUs. This control over a finite supply chain resource creates a major bottleneck for any potential competitor, including hyperscalers.

Despite being the world's largest company, NVIDIA issued scheduled, press-release-style tweets defending its products against Google's. This reactive communication comes across as insecure and is less effective than a nuanced, conversational response from its CEO would be, undermining its dominant market position.