Trump Considers Scaled-Back Nvidia AI Chip Sales to China
US President Donald Trump indicated on Monday a potential openness to allowing Nvidia Corp. to sell a modified version of its most advanced artificial intelligence chip, the Blackwell, to China. This statement suggests a possible shift in the stringent US export control policies aimed at limiting Beijing’s access to cutting-edge AI technology.
During a briefing with reporters, Trump stated he would consider a deal that permits Nvidia to ship its Blackwell chips to the Chinese market, provided the company designs them to be significantly less powerful. He elaborated, “It’s possible I’d make a deal” on a “somewhat enhanced — in a negative way — Blackwell” processor, clarifying that this would entail taking “30% to 50% off of it.”
This remark comes amidst an ongoing technological rivalry between the United States and China, particularly concerning advanced semiconductors critical for AI development. The Biden administration has imposed broad restrictions on the export of high-performance AI chips and chipmaking equipment to China, citing national security concerns and the potential for these technologies to be used for military modernization. Nvidia, a leader in AI accelerators, has been directly impacted by these controls, leading it to design specific, less powerful chips like the A800 and H800 for the Chinese market, only for those models to also face subsequent export restrictions.
Nvidia’s Blackwell architecture represents the company’s latest generation of AI GPUs, designed for demanding applications in large language models and high-performance computing. Restricting its full capabilities in the vast Chinese market poses a significant challenge for Nvidia’s revenue projections, given China’s substantial demand for AI infrastructure. Trump’s suggestion of a “de-powered” Blackwell chip highlights the complex balancing act between safeguarding national security interests and allowing American technology companies to compete globally.
The concept of a “30% to 50% off” chip raises questions about its practical implications for China’s AI ambitions. While a significantly weaker chip would undoubtedly slow down the development of China’s most advanced AI systems, it could still offer a pathway for Chinese companies to acquire some level of advanced hardware. For Nvidia, such a compromise might offer a legal avenue to retain a foothold in a crucial market, albeit with reduced profit margins per unit.
This potential policy shift, if implemented, would mark a notable departure from the current administration’s more rigid stance. It underscores the commercial pressures faced by US tech giants and the ongoing debate within policymaking circles about the most effective way to manage technological competition with China without completely severing economic ties. The specifics of what “30% to 50% off” would entail in terms of computing power, memory bandwidth, or interconnect speeds would be crucial in determining the real impact of such a policy on the strategic technological landscape.