‘These Chinese models are excellent’: Nvidia CEO Jensen Huang hails powerful new Chinese AI models like Kimi K3 – and says don’t be put off by security ‘misconceptions’

Nvidia CEO Jensen Huang has hailed the capabilities of Chinese open source AI models amidst growing interest in low-cost options for enterprises.

In an interview with Axios this week, the Nvidia chief said competition between open and closed-source models is positive for the broader global AI industry.

“The world needs open models,” he told Axios. “These Chinese models are excellent. Open source models that are excellent should be used”.

Huang’s comments come amidst growing interest in Chinese open source AI models in recent weeks. The Kimi K3 model, developed by Moonshot AI, temporarily paused subscriptions due to skyrocketing demand.

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Surging interest in the Kimi K3 model bears similarities to that of DeepSeek, which rocked the US AI industry when it launched in early 2025.

A key advantage of these models lies in both their performance and cost efficiency, the latter of which has become a key focus for enterprises amidst growing concerns over spiralling AI costs in recent months.

As ITPro reported in November 2025, open source AI models often perform on-par with closed source options, and could potentially save enterprises millions in costs each year.

Open source models "routinely achieve 90% or more” of the performance of closed counterparts, the study noted. They also benefit from “significantly lower prices”, with operational costs plunging up to 84% in some cases.

In a research paper published by DeepSeek last year, the company said it spent a paltry amount training its flagship R1 model compared to US rivals who’ve spent billions on training purposes.

Anthropic CEO Dario Amodei suggested building a new AI model could cost over $100 billion in 2024.

Security concerns persist

While the popularity of Chinese AI models continues rising, concerns over security have been flagged repeatedly.

The concerns surrounding Chinese AI models typically focus on areas such as data privacy and national security, with some critics suggesting these tools could be used as a ‘backdoor’ for Chinese intelligence services.

Axios previously reported that the White House could consider imposing restrictions or tight conditions on US firms working with these models.

DeepSeek was subject to the same scrutiny during its rise to prominence across 2025, for example. In August last year, cybersecurity experts told ITPro that using DeepSeek equated to “printing out and handing over your confidential information”.

Huang told Axios that these concerns are a “misconception” and can be used by enterprises safely. On the topic of potential White House restrictions, Huang said this could prove counterproductive and that American firms should consider a breadth of options.

“You can download the models. You could fine-tune it, you can enhance it, you can guardrail it as you desire,” he said.

Huang has a vested interest on this front, however, and noted that increased usage will ultimately benefit Nvidia.

“If there’s great AI, even if it’s open, wherever it comes from, there will be more use,” he told Axios. “Whenever there’s more use, you’ll have to sell a lot more Nvidia computers. We’ll have to build more data centers. We’ll have more services. The technology will diffuse into more industries”.

Bill Conner, president and CEO Jitterbit, said the Kimi K3 launch marks a “clear turning point in accelerating global adoption of Chinese LLMs” but still urged caution with regard to security.

“Enterprises may underestimate the security, accountability, and governance risks associated with adopting new Chinese LLMs,” he said.

“Moonshot AI operates as a cloud service with data stored in China, introducing potential risks for organizations whose data may be shared unknowingly.”

Conner said adoption of Chinese AI models should be treated as a “strategic risk decision, not merely a cost-saving opportunity”.

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