Trump Administration's Pivotal AI Chip Sales to China Ignite Debate

The Trump administration considers selling Nvidia's H200 AI chips to China, aiming to maintain U.S. tech dominance. Despite national security concerns and potential military advantages for Beijing, the administration believes sales will keep U.S. firms competitive. Inter-agency reviews are underway, with final approval pending from President Trump.

The Trump administration has embarked on a significant policy review, potentially paving the way for Nvidia's AI chips, specifically the H200 model, to be shipped to China. According to sources, this move is intended to keep U.S. technological firms ahead of their Chinese counterparts by curbing the demand for Chinese-made chips.

Despite criticism from various political quarters about potential national security risks, the administration believes these sales will help U.S. firms remain competitive. The process involves inter-agency licensing evaluations, with the final decision resting on President Trump if agencies are in disagreement.

This policy shift marks a departure from Trump's previous hardline stance on restricting Chinese access to American technology over allegations of intellectual property theft. The administration intends to support U.S. technological dominance without compromising national security.

(With inputs from agencies.)