Janice R. Andrews
Washington, D.C. – The Trump administration is reportedly exploring the possibility of tightening restrictions on Nvidia’s sales of its H20 artificial intelligence (AI) chips to China, according to sources familiar with the matter.
The discussions, still in their early phases, reflect ongoing concerns about China’s accelerating AI advancements. Sources suggest that these potential restrictions align with policies initially introduced under former President Joe Biden, who implemented stringent export controls on AI chip shipments to China. The H20 chips were specifically designed to comply with these existing regulations.
Nvidia has responded to these reports, stating it is “ready to work with the administration as it determines its approach to AI.” Meanwhile, the White House has yet to comment on the issue.
The news, first reported by Bloomberg, contributed to a slight dip in Nvidia’s stock, which had already been declining earlier in the day. The potential for stricter controls comes amid increasing concerns that China is quickly narrowing the AI gap with the U.S. Just last week, Chinese AI firm DeepSeek introduced an AI assistant that operates with reduced data and lower costs, signaling a potential shift in AI development dynamics.
“This topic has been under discussion at high levels for over six months,” noted Lennart Heim, a researcher at RAND. He explained that the proposal was originally suggested during the Biden administration, with DeepSeek’s progress underscoring its relevance.
Before leaving office this month, Biden had implemented a series of measures limiting AI chip exports to China while also imposing restrictions on other nations. However, Nvidia’s H20 chips have remained eligible for shipment under the current regulations. If additional limitations are enforced, it could further strain U.S.-China tech relations and impact Nvidia’s market strategy in one of the world’s largest AI sectors.
Stay tuned for further updates as the Trump administration refines its stance on AI chip exports to China.
