Nvidia's CEO, Jensen Huang, reportedly negotiated with the Trump administration to avoid export restrictions on the H20 AI chips by offering to invest in new U.S. AI data centers. This move alleviated concerns within the semiconductor industry about the potential for H20 chips, which are modified for performance, to face bans due to their usage in AI models developed by China’s DeepSeek. This situation complicates U.S. strategies for securing AI leadership, especially given existing export rules enacted during the Biden administration that limit AI chip sales globally.
Nvidia CEO Jensen Huang struck a deal with the Trump administration to avoid export restrictions on the H20 AI chips in exchange for investing in U.S. data centers.
Despite fears of export restrictions on the H20s used by China's DeepSeek, the Trump administration reportedly reversed course after Huang's proposal during a Mar-a-Lago dinner.
Senators have called for restrictions on the H20 chips, while the Trump administration previously prepared to impose export controls, making the reversal concerning for U.S. AI dominance.
Nvidia criticized existing AI chip export rules from the Biden administration, labeling them 'unprecedented and misguided,' indicating their potential to hinder global innovation.
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