CEO of Nvidia Jensen Huang seems to have entered into agreement with Trump’s administration To avoid export restrictions on the company’s H20 AI chips.
H20, the most advanced AI chip produced by Nvidia that can still be exported by the US to China, is allegedly saved by a Huang promise to invest in new AI data centers in the US According to NPRHuang made the proposal during a dinner at Trump’s Mar-A-Lago resort at some point last week.
Nvidia refused to comment.
Many in the semiconductor industry were afraid that the H20S, which is modified to have a lower performance than other Nvidia brands, were directed for restrictions because it was reportedly one of China’s chips used to train the R1 Open AI. Released in January, R1 made headlines for its strong performance in relation to US -based AI laboratories, including OpenAi.
Senators on both sides of the runway They asked for restrictions on H20. Even Trump’s administration is said to have been preparing H20 export checks before it was reversed along the way, according to NPR.
Although it is not surprising that Trump allegedly agreed to remove some possible restrictions on chips in return for a Nvidia commitment to invest in US AI infrastructure, allowing NVIDIA to continue exporting H20s to China, it will seem to face the target of the US administration.
Making the move even more complicated is the Trump administration’s decision to maintain all the AI chip export rules introduced by outgoing President Joe Biden in January. These rules set chip export limits to almost every country other than the US – including US Allies – with harder restrictions in China and Russia.
Nvidia has called on these guidelines “unprecedented and wrong” and said they are likely to stifle global innovation.
Many AI companies besides NVIDIA have leaned up Trump’s “American-first” approach to AI in offers to cover the favor of the administration. Openai has partnered with Softbank and Oracle for US $ 500 billion data initiative called the Stargate Project in January. Microsoft promised $ 80 billion for the construction of AI data centers during 2025, with 50% of this US intended
Trump has strong armed partners to get the desired result. He referenced Told Taiwanese company Semiconductor TSMC that it will have to pay tax up to 100% if the company does not build new US chip factories
