The Trump administration has given the green light to China to buy Nvidia H20 chips after CEO Jensen Huang promised to invest more in AI infrastructure in the US. Photo: Inc. |
The Trump administration has unexpectedly reversed plans to restrict exports of an advanced Nvidia AI chip to China, NPR reports, after a lavish dinner at Mar-a-Lago attended by Nvidia CEO Jensen Huang.
The H20, a chip that Nvidia tweaked to comply with current US restrictions for sale in China, seemed likely to be on the embargo list. However, after a secret meeting, the White House decided to suspend any restrictive moves.
The source added that the reason for the change was Nvidia’s promise to invest heavily in AI data centers in the U.S. However, the decision comes against pressure from many lawmakers who are concerned that China’s access to advanced U.S. AI technology could threaten national security.
NPR quoted experts as saying that the Trump administration's "green light" for China to buy the H20 chip is a big advantage for the country. According to Jimmy Goodrich, a senior adviser at RAND, although its computing power is limited to AI training, the H20 "is probably the best chip in the world for inference."
In fact, major Chinese technology companies have quickly "stocked up" with H20 chips worth up to 16 billion USD in the first quarter of 2025, showing that they anticipated the possibility of being limited.
The US chip export controls are designed to slow China's supercomputer development, in case it develops nuclear weapons and artificial intelligence systems. After the decision, NPR revealed that a congressman expressed disappointment, emphasizing that not controlling the export of advanced chips would create opportunities for US rivals to accumulate power.
Source: https://znews.vn/bua-toi-ong-trump-giup-nvidia-thoat-kho-post1544649.html
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