Nvidia's Blackwell Chip Sparks U.S.-China Tensions

Nvidia's advanced AI chip, the Blackwell, is at the center of U.S.-China relations, as President Trump's remarks suggest restrictions on its availability abroad, notably to China. This decision could impact the AI race and has received criticisms from those fearing augmented Chinese military capacity.

U.S. President Donald Trump announced that Nvidia's cutting-edge Blackwell AI chip will not be available for foreign purchase, particularly by China. As Nvidia holds the throne as the most valuable company globally within the AI chip industry, this marks a significant geopolitical stance.

Amid discussions about the potential availability of a scaled-down Blackwell to China, President Trump's recent statements aboard Air Force One suggest otherwise. Concerns in Washington focus on possible implications for China's military prowess and AI advancements.

Nvidia CEO Jensen Huang indicated the absence of U.S. export licenses for China, pointing both to China's current disinterest and Nvidia's reliance on Chinese market revenues for American R&D funding. Meanwhile, Nvidia announced a significant supply agreement of Blackwell chips to South Korea, involving major corporations like Samsung Electronics.

(With inputs from agencies.)