Former President Donald Trump has suggested he may permit Nvidia to sell a less powerful version of its forthcoming generation of graphics processing unit (GPU) chips to China, despite ongoing anxieties within Washington regarding China’s potential use of American technology to strengthen its military.This potential move has ignited debate about the balance between economic interests and national security.

Critics of the proposed arrangement argue that it could inadvertently provide China with increased access to advanced computing power from the United States, even as nations compete for technological dominance. The concern centers on China’s ability to aggregate sufficient quantities of these “mini” chips to achieve meaningful computational capabilities.

Trump described Nvidia CEO Jensen Huang‘s latest chip, the Blackwell, as “somewhat improved in a negative way,” indicating a deliberate reduction in its capabilities, stating that “30 to 50% of it was deducted.” He anticipates Huang will seek further discussion on the matter, suggesting a potential compromise involving an “improved version of the big segment.”

Previously, the Trump governance brokered an agreement with Nvidia and AMD, establishing a system where the U.S. government would receive 15% of the revenue from sales of certain advanced chips in China. This arrangement aimed to balance access with oversight.

Both Republican and Democratic lawmakers have consistently sought to maintain the United States’ lead in artificial intelligence (AI) technology over China. Though, experts warn that even limited access to advanced chips could be strategically leveraged by China.

Saif Khan, a former director of the National Security and National security Department during the Biden administration, cautioned that “even with the existence of mini versions of the leading Nvidia chips, China can spend and buy enough of them to build world leading supercomputers on a global scale of artificial intelligence.” He further warned that this could lead to China surpassing the United States in AI capabilities.

Reports from Reuters last May indicated that Nvidia was developing a lower-cost version of its Blackwell chip specifically for the Chinese market. While Nvidia has not publicly disclosed details about this version, the full American version of the Blackwell chip, unveiled in March, boasts performance improvements of up to 30 times compared to its predecessor.

Frequently Asked questions about Nvidia Chips and China