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.
