tech
US taking 25% cut of Nvidia chip sales “makes no sense,” experts say
Trump’s odd Nvidia reversal may open the door for China to demand Blackwell access.
TL;DR
- Experts and lawmakers warn that Donald Trump's decision to allow Nvidia to export H200 AI chips to China could help China win the AI race.
- The H200 chip is less powerful than Nvidia's most advanced chip but significantly more powerful than China's current top AI chips.
- Critics argue that allowing these sales solves China's computing capability problem and hands over a US advantage.
- Nvidia CEO Jensen Huang and David Sacks reportedly persuaded Trump, arguing that restricting sales would allow Chinese firms like Huawei to gain market share, while allowing sales would keep China dependent on US chips and fund Nvidia's R&D.
- Lawmakers question the legality of a 25 percent cut of sales to the US, suggesting national security is being compromised.
- Experts believe China may use the H200 chips to learn and accelerate its domestic advanced chip production, rather than remaining dependent on US technology.
- There are fears that Trump's policy signals weakness and may encourage other allies to lift their AI chip export restrictions to China.
- Some Chinese firms have expressed interest in the H200 chips, but past concerns about potential backdoors and the recently developed location verification technology by Nvidia could complicate sales.
- China may reject the H200 chips to pressure Trump for access to even more advanced chips like the Blackwell.
- Lawmakers from both parties criticize the decision, with some warning that China will copy Nvidia's technology and seek to eliminate Nvidia as a competitor.
- Concerns are raised that China could use these chips to enhance its military capabilities and surveillance.
- Nvidia, while praising the decision, is also preparing to release a new chip, the Rubin, to surpass the Blackwell.