Even former President Donald Trump has weighed in on similar technologies, lambasting Nvidia’s H20 chip as “obsolete” technology that China already has. His remarks come amid ongoing negotiations regarding export licenses for Nvidia’s advanced Blackwell chips. Trump stated he initially sought a 20% cut from Nvidia’s sales to China, but after discussions with Jensen Huang, Nvidia’s CEO, this figure was reduced to 15%.
In return, Nvidia secured an unusual arrangement with the federal government. This is because in return for export control licenses to sell the H20 chip in China, they will pay a 15% cut. In April, at the heights of pandemic, the Trump administration required that hospitals. Under the new rules, companies need to have a license to export the H20 chip. So far, the export controls imposed by the administration have drastically restricted Nvidia’s sales. Prior to these restrictions, the company estimated that it would bring in over $8 billion in revenue from H20 chip sales in the July quarter.
Trump remarked on the situation, stating that “China already has chips with some similar capabilities to Nvidia’s H20 chip.” He emphasized that the H20 is outdated, saying, “It’s an old chip that China already has.” This sentiment aligns with the administration’s broader concerns that advanced technology could bolster China’s AI industry and potentially allow it to surpass U.S. capabilities.
In response to the changes in export regulations, Huang has expressed that it is in the best interest of U.S. national security for Chinese AI developers to utilize American technology. He explained that limiting access to Nvidia chips would almost certainly speed up the creation of China’s independent chip sector. Huang explained, “Denying Chinese AI developers access to Nvidia chips would encourage the Chinese chip industry to develop and catch up.”
Trump thinks those talks surrounding the Blackwell chip are encouraging. He announced that Huang would be coming to the US again to negotiate export licenses. “I think he’s coming to see me again about that,” Trump said. He left open the possibility of doing a deal for the Blackwell chip, but expressed hesitance to go that route. He called it “the most super-duper advanced” thing. Instead, Trump proposed the option of settling for “somewhat enhanced in a negative way” version of the chip.
Nvidia’s stance on this issue tells you everything you need to know about their desire to see export control rules work in their favor. A spokesperson stated, “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.” This indicates ongoing confidence at Nvidia that it will be able to deal with the regulatory environment, even after those recent blows.
The current exchange between Trump and Huang exemplifies the delicate dance between the benefits of innovation and the demand for national security. Negotiations are still continuing and both sides want and need to come to an agreement. They intend to ride a balancing act between addressing regulatory matters and maintaining Nvidia’s competitive edge in international markets.