US taking 25% cut of Nvidia chip sales “makes no sense,” experts say

US President Donald Trump's recent decision to allow Nvidia to export an advanced artificial intelligence chip, the H200, to China has left experts and lawmakers stunned. The move is seen as a significant reversal of previous policies aimed at limiting AI chip sales to China.

Under current regulations, only less powerful chips like the A100 and H100 would be exported to China. However, Trump's decision allows Nvidia to sell its more advanced H200 chip to China, which could potentially give Beijing a major advantage in the AI race.

Nvidia CEO Jensen Huang had reportedly lobbied for this change, arguing that restricting sales would ensure that only Chinese companies gained access to the technology. However, experts and lawmakers have warned that this approach may not be effective in preventing China from learning and replicating the advanced technology.

China's leading AI chip maker Huawei is estimated to be two years behind Nvidia's technology. By exporting H200 chips, China could potentially catch up quickly and develop its own domestic chip production capabilities. This, in turn, could enable Beijing to challenge US dominance in the AI market.

Critics argue that Trump's decision may undermine US national security by allowing China to acquire advanced technology that could be used for military purposes or to disrupt critical infrastructure. The US would also receive a 25% cut of sales, which lawmakers have warned may not be legal and could damage US foreign policy relationships with other countries.

China is reportedly interested in purchasing the H200 chip, but its government has expressed concerns about backdoors that could allow Nvidia to remotely shut down chips. Nvidia has denied such backdoors exist, but Chinese firms have sought reassurances from the company.

The decision has sparked criticism from both Democratic and Republican lawmakers, who warn that Trump's policy change is a threat to US national security. Some experts have questioned how much thought was put into the policy, as the US continues to restrict less advanced AI chips while green-lighting H200 sales.

In conclusion, Trump's decision to allow Nvidia to export the H200 chip to China has raised concerns about national security and the potential for China to acquire advanced technology that could be used to challenge US dominance in the AI market.
 
😕 I feel like we're playing a game of cat and mouse with our tech rivals, and it's hard not to worry when we let them get their hands on something so powerful. What if they can use this chip for anything other than what we intend? 💡 It's scary thinking about how fast China could catch up with us, especially when they're already 2 years behind us in terms of technology. I'm just trying to stay calm and see how this whole thing unfolds, but it's hard not to feel a little anxious 😬.
 
🤔 The dude who's been out of office is crazy 🙄! Exporting a super powerful AI chip to China without thinking it through? That's just not right 🤦‍♂️. I mean, we're talking about potentially giving China a huge advantage in the AI game and undermining US national security at the same time 😬. And what's with the 25% cut of sales deal? Is that even legal? 🤑 It seems like a lot of folks are still scratching their heads over Trump's decision, and I don't blame them 💡.
 
🤔 Think about it like this, what if the US government was like a big school trying to keep its secrets safe? But instead of just locking the doors, they actually gave out the blueprints to everyone so they can start building their own castle walls too 🏰💡. It's all about balance, right? You gotta let some freedom in for innovation and progress, but not at the cost of security or putting others at risk... that's like playing with fire without a safety net 🔥🚨
 
I'm low-key shocked by this move 🤯... like, I get it, Trump's all about propping up Nvidia and giving them a leg up on the competition, but come on! This is like, China just got handed a major key to unlock their own AI superpower 🔑. And those backdoors concerns? Not helping 😬... I mean, if China's worried about that stuff then Nvidia should be too, you know? But at the same time, it's not all doom and gloom. This could also be seen as a way for the US to get out of the AI chip export business altogether 🤖... just think about it, we're basically outsourcing our own innovation to China 🌊.
 
🤔 This is a super weird move by Trump 🤷‍♂️. Like, we're all good with China having some of our tech, but not the best stuff? It's like saying "Hey, keep up with us, but don't be too good 😏". Nvidia's got a point about restricting sales being kinda counterproductive, but at the same time, it's a big security risk 🚨. I'm just not sure what Trump was thinking here 🤯. And can we talk about how this is going to play out with the 25% cut of sales? That sounds like a recipe for disaster 📉. It's all so... complicated 💥.
 
I'm not sure what's going on here... Trump just lets Nvidia sell super-powerful AI chips to China, which is basically letting Beijing play catch-up with tech 🤔. What's next? Letting them have all our top-secret military projects too? 😂 I mean, I get it, we don't want to be seen as restrictive, but this feels like a huge risk. China could just copy-paste the H200 chip and suddenly they're on par with us tech-wise 🚀. And what's the 25% cut of sales really about? Just making friends or is there something more going on here? 🤑 Not sure I buy it, but I'm all for keeping US national security top priority 😊
 
🤔 so trump just decided to let china have a free pass on this super advanced AI chip, like what's next? 🤑 we're basically just handing them a golden key to our national security. and for what? a 25% cut of sales? lol sounds like a pretty sweet deal to me... meanwhile, us is still stuck in the stone age with less powerful chips 🤯 i'm not surprised lawmakers are freaking out, it's about time someone spoke up... 🚨
 
🤔 so Trump is just gonna let China get their hands on this super powerful AI chip like it's no big deal? 😒 Nvidia is basically going to help China catch up in the AI game and now we're worried about China potentially using it against us? 🚨 I mean, I'm all for good business, but come on. This feels like a massive security risk just waiting to happen... or is this just more of Trump's "business as usual" vibes 😏
 
🤔 I'm kinda surprised by this move, TBH. I mean, we've been hearing about how important AI is for the future of tech and the economy, but at the same time, it's like, aren't we worried about China getting too close to our tech secrets? 🤷‍♂️ It seems like we're kinda giving them a free pass to catch up and potentially even surpass us. I get that Nvidia wanted to make sales, but is this really worth risking national security for? 💸 It's all pretty complicated, but one thing's for sure - this decision has sparked some major controversy! 😬
 
🤔 This is like so crazy! Trump's decision to let Nvidia sell its advanced AI chip to China is a big deal, you know? 📊 It's like, why would he do this? I mean, we all know how much China wants to get ahead in the tech game, and now they're basically getting a huge leg up with this chip. 💪 But at the same time, isn't that gonna hurt US national security? 🚨 I don't think it's fair to say that Trump made a bad decision without considering all the factors, though. Maybe there's more to the story than we know... 🤷‍♂️ #AIChipGate #ChinaUSRelations #TechPolitics
 
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