Trump's Controversial Chip Decision Sparks Debate on US-China Tech Race

U.S. President Donald Trump hinted at permitting Nvidia to sell a reduced-capability version of its advanced GPU chip in China. Despite U.S. concerns over China's potential military use of AI advancements, Trump defended this move as part of an agreement to receive 15% revenue from chip sales to China.

U.S. President Donald Trump has suggested that Nvidia might be allowed to sell a toned-down version of their new advanced GPU chip to China. This comes amidst ongoing worries in Washington about China using U.S. AI capabilities to enhance its military strength, potentially altering the technological power balance.

Remarking on the new chip, Trump referenced CEO Jensen Huang's 'Blackwell' chip. He indicated that its performance could be reduced by 30-50% for the Chinese market. Trump highlighted a discussion scheduled with Huang, aiming to finalize an unenhanced version for China.

A pioneering deal was made with Nvidia and AMD, where the U.S. government would receive 15% of revenue from select chip sales in China. This sparked unease among policymakers keen to prevent China from surpassing the U.S. in AI technology. The move symbolizes Trump's significant interference in corporate operations for national benefit.

(With inputs from agencies.)