Six key Senate Democrats just urged President Donald Trump to reverse his administration’s decision. They fear that the Biden administration is letting Nvidia and Advanced Micro Devices (AMD) off the hook on advanced AI semiconductor chip sales to China. On August 11, Trump declared that these companies would give the U.S. government a 15% share of their revenue for targeted sales. In exchange, they would receive export licenses.
On a hot and sticky Friday, Senators Chuck Schumer, Mark Warner, Jack Reed, Jeanne Shaheen, Christopher Coons, and Elizabeth Warren came out in public support of that letter. They outlined grave fears for our national security and military preparedness. Senators argue that the United States has always fiercely guarded its technological advantage. They contend that this has been accomplished by limiting opponents’ access to key technologies.
In each of their letters, the senators directly requested a public, clear and comprehensive reply from the Trump administration by no later than August 22. We would love to hear back from our current contract partners Nvidia and AMD. Additionally, remove descriptions of any similarly structured deals with other firms that are pending.
“Our national security and military readiness relies upon American innovators inventing and producing the best technology in the world, and in maintaining that qualitative advantage in sensitive domains.” – Senators Chuck Schumer, Mark Warner, Jack Reed, Jeanne Shaheen, Christopher Coons, and Elizabeth Warren
The letter further expresses concern about the precedent this agreement sets. The senators cautioned that undermining America’s competitive advantage would put U.S. security at risk. They rightly pointed out the dangers of us agreeing to some limited percentage of Chinese sales in exchange.
“The willingness displayed in this arrangement to ‘negotiate’ away America’s competitive edge that is key to our national security in exchange for what is, in effect, a commission on a sale of AI-enabling technology to our main global competitor, is cause for serious alarm.” – Senators Chuck Schumer, Mark Warner, Jack Reed, Jeanne Shaheen, Christopher Coons, and Elizabeth Warren
China has added another layer of complication by mandating that major technology companies—including ByteDance, Alibaba, and Tencent—stop buying Nvidia chips. This pause will remain in effect while a national security review occurs. Regulators in China are still closely monitoring the developments. This review has the potential to undermine billions of dollars in tech sales from one country to the other.
Nvidia has suggested that the stopped sales could have long-term financial impact. A representative stated that the decision to ban certain technologies could cost American taxpayers significantly without offering any substantial benefits.
“The H20 would not enhance anyone’s military capabilities, but would have helped America attract the support of developers worldwide and win the AI race. Banning the H20 cost American taxpayers billions of dollars, without any benefit.” – Nvidia spokesperson
Tensions are rising over technological supremacy between the U.S. and China. In short, senators are demanding the Trump administration go big, or go home.
“We again urge your administration to quickly reverse course and abandon this reckless plan to trade away U.S. technology leadership.” – Senators Chuck Schumer, Mark Warner, Jack Reed, Jeanne Shaheen, Christopher Coons, and Elizabeth Warren