Nvidia, which stands to make billions, pushes back as Democratic senators criticize the Trump administration for letting the company resume the AI GPU sales to China.
After the Trump administration reversed course to allow Nvidia to resume AI chip sales to China, the chipmaker is defending the move as a win for the US. Democrats, however, argue that the move is puzzling and « stands in direct contradiction » to the White House’s new AI Action Plan.
Nvidia designed its lower-power H20 chip for the Chinese market to comply with US export controls, but in April, the US restricted H20 sales to prevent the Chinese government from obtaining cutting-edge chips to power its AI ambitions.
Earlier this month, the White House lifted those restrictions. According to Nvidia, the US government has « assured » the company that licenses will be granted for the H20 sales. The company has even placed orders for 300,000 H20 chipsets with Taiwan’s TSMC to fulfill the Chinese demand, per Reuters.
« The H20 helps America win the support of developers worldwide, promoting America’s economic and national security », Nvidia said in a statement. « It does not enhance anyone’s military capabilities, and the US government has full visibility and authority over every H20 transaction.
