Nvidia’s AI GPU Sales to China Aimed at U.S. Competitive Edge, But Democrat Skepticism Looms
In a significant development, Nvidia, the leading chipmaker, has defended its decision to resume sales of AI chips to China following the Trump administration’s recent policy reversal. The move, according to Nvidia, represents a victory for American interests as it supports global developer backing and bolsters economic and national security.
However, this action has sparked criticism from Democratic lawmakers who argue that it contradicts the White House’s newly unveiled AI Action Plan. The concern lies in the potential enhancement of China’s advanced AI capabilities, posing a risk to US national and economic security.
Nvidia had designed its lower-power H20 chip specifically for the Chinese market to comply with US export controls. However, in April, these sales were restricted due to concerns about the Chinese government acquiring cutting-edge chips to fuel their AI aspirations.
Recently, the White House lifted these restrictions, with Nvidia reporting that it has received assurances from the US government regarding the issuance of licenses for H20 sales. The company has already placed orders for 300,000 H20 chipsets with Taiwan’s TSMC to meet the Chinese demand.
In a statement, Nvidia emphasized that the H20 does not enhance military capabilities and that the US government maintains full visibility and authority over every H20 transaction. This announcement comes after a group of Democratic senators, including Mark Warner, vice chair of the Senate Intelligence Committee, expressed concern about the White House’s decision to lift the chip restrictions.
The Democrats are particularly worried about the potential power of the H20, fearing it could rival Nvidia’s other leading-edge chips despite its lower capabilities. They argue that allowing sales to China undermines Trump’s AI Action Plan, which aims to strengthen export control efforts on AI compute.
So far, the Commerce Department has yet to respond to these concerns. Previously, Nvidia CEO Jensen Huang had criticized the AI chip ban, expressing concerns over potential billions in lost sales. Huang believes that China will develop cutting-edge AI with or without US technology.
Meanwhile, AMD also plans to resume its own AI GPU sales to China. The company has yet to respond to a request for comment on this matter.
Both Nvidia’s CEO and AMD’s CEO were in attendance at last week’s AI Summit where President Trump presented the AI Action Plan. While Trump did not delve into specific chip details, he pledged to maintain necessary protections for national security without compromising on global competitiveness in technology.
