Trump Administration Ignites AI Chip Debate with China Shipments

The Trump administration has approved sales of Nvidia's powerful AI chips to China subject to specific regulations, despite Washington concerns. The decision has sparked debate, especially as it requires third-party review, security compliance from Chinese buyers, and a 25% fee, amid fears of military misuse.

In a controversial move, the Trump administration has sanctioned the sale of Nvidia's powerful H200 AI chips to China, sparking debate. Despite fears expressed by China hawks in Washington that the chips could bolster Beijing's military capabilities, the administration has put in place specific safeguards.

According to the new regulations, a third-party testing lab must review the chips' AI capabilities before they can be shipped. Additionally, the chips destined for China cannot exceed 50% of the amount sold to American customers, ensuring a balance between domestic and international sales.

Furthermore, Nvidia must certify adequate U.S. stock, while Chinese buyers need to prove their security measures and promise not to use the chips for military purposes. President Trump, meanwhile, has attached a 25% fee to these sales, as the debate over AI chip control continues to intensify.

(With inputs from agencies.)