Trump says he may speak to China's Xi about Nvidia's 'super-duper' Blackwell chip
News Summary
U.S. President Donald Trump stated on Wednesday that he might discuss Nvidia's Blackwell artificial intelligence chip with Chinese President Xi Jinping during their expected meeting on Thursday. Sales of Nvidia's high-end AI chips to China, which accounted for 13% of its revenue in the past financial year, have been a significant sticking point in trade talks between the two nations. Washington has justified its export controls, which ban Nvidia from selling its most advanced AI chips to China, by alleging the Chinese military would use them to enhance capabilities. Trump praised Nvidia's Blackwell as a "super-duper chip" and expressed "great optimism" about his meeting with Xi. Previously, the Trump administration had vacillated on H20 chip sales to China, initially banning them before lifting the ban as part of rare earths negotiations. In August, Trump proposed allowing Nvidia to sell H20 chips to China in exchange for a 15% revenue cut for the U.S. government on certain advanced chip sales. However, Nvidia has not yet shipped any H20 chips to China due to a lack of U.S. payment rules and China discouraging domestic firms from purchasing the California-based company's chips. Nvidia CEO Jensen Huang noted that the company has not applied for licenses for its newest chips due to China's current stance, though he hopes for future market access.
Background
U.S.-China tensions in technology and trade have been a persistent feature, particularly concerning semiconductors and AI chips. The U.S. has consistently used export controls to restrict China's access to advanced chip technology, aiming to curb its military and high-tech development. Nvidia is a global leader in AI chip manufacturing, with China representing a significant market. The Trump administration has a history of leveraging technology exports as bargaining chips in trade negotiations, characterized by its transactional and unpredictable foreign policy. Concurrently, China is actively promoting self-sufficiency in its semiconductor industry to reduce reliance on foreign technology and counter U.S. export restrictions.
In-Depth AI Insights
What are the deeper strategic considerations behind the Trump administration's vacillating stance on Nvidia chips? - This reflects a fundamental divergence within the Trump administration's China strategy: whether to comprehensively contain China through technological restrictions or to gain economic benefits and maintain some degree of dependency through conditional market access. - This