The US administration doesn't plan to stop AI curbs on China, even after the request of the nation's largest AI chip manufacturer, NVIDIA.
President Trump To Keep The Pressure On NVIDIA's China Business, Denies Any Relaxation In Chip Policies
NVIDIA's CEO, Jensen Huang, hasn't been entirely in line with what the US is doing regarding restricting China's AI developments, since he has voiced opposition to the "AI Diffusion" rule, ever since the Biden administration initially introduced it. NVIDIA's CEO claims that the Trump administration's policy would force China to develop its ecosystem, which would not only be a "nail in the coffin" for NVIDIA, but it would also make the US lose its dominance in the segment. However, it seems like the White House doesn't favor what Jensen has been saying over the past few days.
We obviously have huge respect for Jensen. When it comes to inside China, I do think there is still bipartisan and broad concern about what can happen to these GPUs once they’re physically inside. When it comes to the rest of the world, we want the American AI stack, starting from the GPUs to the models to everything on top.
- Sriram Krishnan, Senior Policy Adviser for AI via Yahoo
The Trump administration didn't hold back on imposing restrictions on China at all, since even after taking a pledge of a $500 billion investment from NVIDIA, they decided to ban the export of the H20 AI accelerator. In the recent guidance for the new AI Diffusion policy, the US plans to restrict the use of Huawei's chips in China only, and any other foreign nation using them would be in direct violation. So it is safe to say that the US isn't expected to cool down on its crackdown against China's AI developments.
NVIDIA's CEO has put up his case against the US's approach towards China, claiming the country is holding back from a massive opportunity. He says that more than 50% of AI engineers come from China, and there is no way that China would hold back on its efforts. DeepSeek and Huawei's achievements are examples of the talent available in the region. According to Jensen, the diffusion rule should allow American chips to be used by Chinese entities to make the US a dominant force.
It would be interesting to see how NVIDIA adjusts its operations in China, given that the US won't back down on its restrictions. For now, Team Green is expected to introduce a Blackwell-based AI solution for the Chinese markets, which could drop as soon as July.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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