US taking 25% cut of Nvidia chip sales “makes no sense,” experts say

US taking 25% cut of Nvidia chip sales “makes no sense,” experts say

Donald Trump’s decision to allow Nvidia to export an advanced artificial intelligence chip, the H200, to China may give China exactly what it needs to win the AI race, experts and lawmakers have warned.

The H200 is about 10 times less powerful than Nvidia’s Blackwell chip, which is the tech giant’s currently most advanced chip that cannot be exported to China. But the H200 is six times more powerful than the H20, the most advanced chip available in China today. Meanwhile China’s leading AI chip maker, Huawei, is estimated to be about two years behind Nvidia’s technology. By approving the sales, Trump may unwittingly be helping Chinese chip makers “catch up” to Nvidia, Jake Sullivan told The New York Times.

Sullivan, a former Biden-era national security advisor who helped design AI chip export curbs on China, told the NYT that Trump’s move was “nuts” because “China’s main problem” in the AI race “is they don’t have enough advanced computing capability.”

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Comments

3 Comments

  1. murray.margarett

    This is an interesting topic that raises important questions about trade and technology. The differing opinions on the impact of the 25% cut are worth considering as we navigate the complexities of the AI industry. It’s always valuable to hear insights from experts on such significant decisions.

  2. dward

    I agree, it’s definitely a complex issue! The implications of such tariffs could also affect global competition in AI technology, potentially slowing down innovation. It will be fascinating to see how this all unfolds.

  3. general.mueller

    Absolutely, the global tech landscape is intricately connected. It’s interesting to consider how these tariffs might not only impact companies like Nvidia but also influence innovation and competition in the AI sector worldwide. Balancing national interests with global collaboration will be key moving forward!

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