Trump's Bold Move: Selling Scaled-Down AI Chips to China
U.S. President Donald Trump signaled a possibility of allowing Nvidia to export a scaled-down AI chip to China, amidst concerns over China's access to U.S. tech. The Trump administration will take 15% revenue from chip sales in a rare deal as critics fear it might boost China's military capabilities.
President Donald Trump has proposed allowing Nvidia to export a less advanced version of its latest GPU chip to China, despite fears that Beijing might leverage the technology to enhance its military. This potential move could lead to increased computing power for China as the two superpowers compete for technological dominance.
Trump's comments came after finalizing an uncommon deal with Nvidia and AMD, entitling the U.S. government to 15% of revenues from Chinese sales of certain chips. This agreement reflects Trump's intervention in corporate matters to protect American interests and maintain a technological edge over China.
Although the deal is unprecedented, critics argue that scaling down Nvidia's chips won't prevent China from developing cutting-edge AI technologies. Washington remains cautious about safeguarding national security while maintaining competitive export practices.
(With inputs from agencies.)
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