Clout wars: Jensen Huang eclipses Elon Musk and Tim Cook in Washington
Apple avoided U.S. tariffs and continued to grow in China, while Cook earned the reputation as a skilled policy navigator and prominent American business envoy to Beijing.
But, in Trump 2.0, not only has Apple lost its crown to Nvidia as America's most valuable company, several tech pundits say the AI darling's charismatic leader, Jensen Huang, has left Cook far behind in political influence.
"Huang has become a global figure and taken on a new role politically due to his success in the AI revolution," said Wedbush's Dan Ives, adding that the importance of Nvidia's AI chips has "vaulted him ahead of Cook."
"He has found himself in a very strong position to navigate the political landscape ... [as] there is only one chip in the world fueling the AI revolution, and that's Nvidia's," Ives said.
The optics of Huang's political ascendancy have never been stronger, as Nvidia last week announced during its CEO's latest visit to Beijing that it expected to soon resume sales of its H20 AI chips to China.
The exports of the H20 chip to China had been restricted earlier this year — a move that Huang openly lobbied against.
"It was a historic win for Nvidia and Jensen ... and I think it shows the increasing political influence that Huang's having within the Trump administration," Ives said. Huang had met with Trump in DC right before his China visit.
The H20 reversal has been linked to trade negotiations between the U.S. and China. However, several experts told CNBC that Huang's lobbying played a large role in it.
The Nvidia CEO has met with Trump many times this year, including joining him on a trip to the Middle East in May, which resulted in a massive AI deal that will see the delivery of hundreds of thousands of Nvidia's advanced AI chips to the United Arab Emirates.
The Emirates deal had been seen as a way for America to push its global tech leadership, solidifying its technology stack in a new market over potential rivals like China's Huawei.
After the trip, Huang increasingly began making a case against U.S. chip restrictions, arguing that they would erode America's tech leadership to the benefit of domestic Chinese players.
According to a report from the New York Times, this had also been a narrative Huang had been pushing to Trump and his officials behind the scenes.
Paul Triolo, senior vice president for China, and technology policy lead at DGA-Albright Stonebridge Group, told CNBC that Huang's arguments aligned with the thinking of influential White House AI and Crypto Czar David Sacks, further swaying the administration to lift restrictions on H20 chip exports.
"Sacks and Huang both argue that limiting exports of U.S. technology such as select and non-cutting-edge GPUs to China risks pushing Chinese companies to use domestic alternatives ... At the end of the day, this argument likely carried the day on the H20 issue," he said.
It's unclear when or if Nvidia will restart production lines of the H20, but if Nvidia is simply able to sell existing stocks of H20s, it will still be a "significant revenue boost and beneficial to Nvidia in terms of retaining clients' goodwill in China," Triolo added. Nvidia said it took a $4.5 billion writedown on its unsold H20 inventory in May.
Huang said last week that every civil AI model should run on the U.S. technology stack, "encouraging nations worldwide to choose America," as Nvidia announced resuming H20 sales soon.
When Trump won his second presidential election in November, many had expected a different tech CEO to hold the most influence on the administration and to act as a bridge between the U.S. and China. But Tesla's Elon Musk had a rather public break-up with Trump.
In November, experts told CNBC that Musk's close ties to Trump and his business interests in China could help soften the president's aggressive trade stance toward Beijing, while cautioning against putting too much stock into the Tesla CEO.
Meanwhile, under Trump's second presidency, Apple's Cook has seen some strong pushback from the administration.
In May, Trump expressed a "little problem with Tim Cook" over Apple manufacturing products in India, despite the iPhone maker's commitment of a $500 billion investment in the U.S., announced in February.
In response to the latest trade tensions between China and the U.S., Apple has accelerated efforts to de-risk supply chains from China by moving more iPhone production to India.
Earlier this month, Trump adviser Peter Navarro also criticized Cook, saying he was not moving production out of China fast enough.
Apple and Cook were seen as the most influential company and CEO, respectively, in the first Trump administration, but now its Huang and Nvidia, said Ray Wang, CEO of Silicon Valley-based Constellation Research Inc. "Almost everything rides on Nvidia's chips."
According Triolo, while Huang has so far been able to "fairly deftly straddle both the U.S. government and China market" and "President Trump appears to be a big fan," it remains unclear exactly where the administration will draw the line on chip restrictions.
"The goalposts here have been changed several times, causing significant and costly forced redesigns and booking capacity," he said.
Despite Huang's growing influence in the tech world and in the Trump administration, there is no guarantee it will remain that way, other experts said.
"For the moment, NVIDIA has gone from being the chief target of chip controls to chief influencer. The question is, how long will that moment last?" said Reva Goujon, director at Rhodium Group.
The U.S. is also currently carrying out an investigation on the semiconductor industry that could result in sector-wide tariffs, and once again put the Trump administration's aims at odds with Nvidia's business. While Nvidia has been moving more manufacturing to the U.S., most of it remains in Taiwan.
Cook may offer a lesson on how tricky it can be to operate a major technology business that views both China and the U.S. as key markets.
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