Jensen Huang Saw GPU Future While Others Chased CPUs — Trump AI Czar David Sacks Rejects Calls To Break Up Nvidia, Backs 'Build Baby Build' Strategy

Benzinga
2025.07.25 09:02
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White House AI czar David Sacks defended Nvidia against breakup calls, praising CEO Jensen Huang's GPU vision. He emphasized that Nvidia's market dominance is a result of visionary leadership, not antitrust issues. Trump's "build baby build" strategy aims to enhance AI infrastructure and energy capacity, with a focus on maintaining U.S. tech standards globally. Needham analyst N. Quinn Bolton raised Nvidia's price target to $200, projecting significant revenue growth from AI chip sales, as Nvidia shares have surged 25.62% year-to-date, outperforming the Nasdaq.

White House AI and crypto czar David Sacks defended Nvidia Corp. NVDA against breakup calls during an interview, citing the company’s visionary leadership and competitive market dynamics as President Donald Trump outlined his “build baby build” strategy for AI dominance.

What Happened: Sacks rejected suggestions that Nvidia’s market dominance warrants antitrust action, emphasizing that CEO Jensen Huang‘s 30-year GPU vision created the company’s current advantage.

“When everyone else was focused on CPUs, he had this vision around GPUs,” Sacks told CNBC. “In America, we don’t punish winning, we don’t punish success that comes from being visionary.”

The comments follow Trump’s July admission that he initially considered breaking up Nvidia before learning market realities. “I said, ‘Look, we’ll break this guy up,’ before I learned the facts,” Trump told an AI summit audience. He later acknowledged that catching Nvidia would take “at least ten years” even if the company ran “totally incompetently.”

Sacks outlined America’s competitive position against China across the AI technology stack. While Chinese models like DeepSeek and Qwen trail U.S. capabilities by only months, Nvidia maintains a “couple of years” lead over China’s Huawei in chip design. Taiwan Semiconductor Manufacturing Co. holds an even larger advantage over China’s SMIC in manufacturing.

Trump’s “build baby build” initiative targets energy infrastructure as critical for AI leadership. The president signed executive orders to accelerate AI data center construction and streamline energy development. “If you want to have AI dominance, you’ve got to have energy dominance,” Sacks explained, noting that new AI infrastructure requires substantial electricity capacity.

Why It Matters: The administration also prioritized AI exports to establish American technology standards globally. “We want the whole world using the American tech stack,” Sacks said. “If we don’t provide that standard, Huawei surely will.”

Needham analyst N. Quinn Bolton raised Nvidia’s price target to $200 from $160, projecting $3 billion quarterly H20 chip sales to China following resumed export approvals. Bolton forecasts revenue reaching $315 billion by fiscal 2028, including $20 billion from Chinese data center GPU sales.

Nvidia shares gained 25.62% year-to-date, outperforming the Nasdaq Composite’s 9.22% advance as investors bet on continued AI infrastructure expansion.

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