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Trump Administration Weighs Stricter Curbs on Nvidia’s China Sales

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The Trump administration is reportedly considering tightening restrictions on Nvidia’s sales of its H20 chips to China, according to sources familiar with the matter. These chips, designed to run artificial intelligence (AI) software, were developed to comply with existing U.S. restrictions on shipments to China, which were initially put in place during the Biden administration. The discussions, still in their early stages, have been ongoing for more than six months, with some elements of the conversation stemming from the previous administration’s stance on technology exports to China.

The potential move to limit Nvidia’s sales of these chips comes amid growing concerns about China’s progress in AI development. China’s recent launch of DeepSeek, an AI assistant that reportedly uses less data and costs significantly less than existing models, has raised alarms that China may be closing the gap on the U.S. in AI technology.

Nvidia has stated that it is “ready to work with the administration as it pursues its own approach to AI.” Following the news, Nvidia’s stock, which was already in decline, saw slight additional losses. The White House has not yet commented on the matter.

While the Biden administration previously enacted a broad set of restrictions barring AI chip exports to China and limiting shipments to other countries, certain AI chips like Nvidia’s H20 remain permissible for export. The potential tightening of these regulations underscores growing tensions over the global AI race and the strategic importance of controlling the flow of advanced technology.

 

Trump Revokes Biden’s 50% EV Target, Freezes Charging Station Funds

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U.S. President Donald Trump has revoked a key executive order from his predecessor, Joe Biden, which aimed for electric vehicles (EVs) to account for 50% of new car sales in the U.S. by 2030. In addition, Trump has halted the distribution of unspent government funds for EV charging infrastructure and signaled potential changes to policies favoring electric vehicles.

Key Points:

  • Revocation of EV Target: Trump annulled Biden’s 2021 order to have half of all new vehicles sold be electric by 2030, a target that, though non-binding, had received support from automakers.
  • Freezing Funds: Trump’s order freezes $5 billion allocated for vehicle charging stations that remains unspent.
  • State Waivers: Trump called for the end of state waivers that allow states like California to impose stricter zero-emission vehicle rules, including the plan to ban gasoline-only vehicle sales by 2035.
  • Reconsidering Emissions Rules: The Trump administration plans to review emissions regulations, which require automakers to sell between 30% to 56% EVs by 2032, in line with federal and state emissions targets.
  • Potential Elimination of EV Tax Credits: Trump’s order suggests that his administration could eliminate EV tax credits and other subsidies for electric vehicles, arguing that these policies distort the market.
  • Focus on Oil and Gas: Trump reiterated his support for increasing U.S. oil production while seeking to reverse Biden’s clean energy initiatives, including subsidies for solar, wind, and hydrogen production.

Perplexity AI Proposes Merger with TikTok U.S. to Prevent Ban

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U.S.-based search engine startup Perplexity AI has submitted a proposal to merge with TikTok U.S., according to a source familiar with the matter. The bid, submitted to TikTok’s parent company ByteDance on Saturday, aims to address the looming threat of a U.S. ban on TikTok, set to take effect on Sunday unless the platform severs ties with ByteDance.

President-elect Donald Trump indicated on Saturday that TikTok could receive a 90-day reprieve starting Monday, offering the company more time to resolve its ownership issues.

The proposal, first reported by CNBC, suggests a merger between TikTok U.S. and Perplexity AI to form a new entity that would also incorporate New Capital Partners. This structure would allow ByteDance’s existing investors to retain their equity stakes while Perplexity AI’s advanced search tools would enhance TikTok’s functionality by integrating video content with rapid, citation-based search capabilities.

A source close to the negotiations, speaking on condition of anonymity, stated that Perplexity’s approach is unique as it proposes a merger rather than a sale, which could appeal to ByteDance’s interests. TikTok and New Capital Partners have yet to comment on the proposal.

Perplexity AI, known for its cutting-edge language model-powered search tools, sees this merger as an opportunity to expand its capabilities while maintaining TikTok’s popularity. TikTok currently boasts nearly half of the U.S. population as users, influencing online culture and driving growth for small businesses.

Meanwhile, TikTok announced on Friday that it would halt operations in the U.S. on Sunday unless the Biden administration provides assurances to tech giants like Apple and Google that enforcement actions under the ban will not apply to them.