The Trump administration is considering tightening restrictions on Nvidia’s H20 AI chip sales to China, sources familiar with the matter said. The discussions are in early stages, but the idea has been under review since the Biden administration, which initially imposed curbs on AI chip exports to China.
The H20 chips, designed to comply with Biden-era restrictions, enable AI software operations but remain legally exportable to China. Nvidia stated it is “ready to work with the administration as it pursues its own approach to AI.” The White House declined to comment. Nvidia’s stock, already down for the day, saw further declines after Bloomberg first reported the news.
Concerns are growing that China is rapidly advancing in AI development. Last week, Chinese AI firm DeepSeek unveiled a free AI assistant that operates with less data and lower costs, potentially shifting the competitive landscape. Lennart Heim, a researcher at RAND, noted that the issue has been discussed for over six months among senior officials, with DeepSeek’s launch reinforcing concerns.
Biden, who left office this month, had imposed extensive AI chip export restrictions to China and other nations. However, certain chips, including Nvidia’s H20, remain legally exportable. The Trump administration’s potential move to tighten restrictions signals ongoing U.S. efforts to curb China’s AI progress.
Also read: Quaker Groups Sue to Block Immigration Raids in Churches
