President Donald Trump’s decision to lift the ban on exporting Nvidia’s H20 chips to China is a critical misstep that could jeopardize America’s technological edge in the AI race. Advisors, including Nvidia CEO Jensen Huang, influenced this decision, enabling China to enhance its AI capabilities. The U.S. government stands to gain financially from this move, with Nvidia and AMD reportedly agreeing to pay 15% of their China chip revenues for export licenses. Contrary to claims that these chips are not advanced, the H20s played a vital role in China’s DeepSeek AI model, highlighting their significance. Before the ban, DeepSeek’s CEO noted that U.S. restrictions were a major obstacle, and experts from Tencent indicated the ban’s reversal could negate America’s advantages in AI. This decision undermines national security and risks allowing China to close the technological gap, potentially shifting the balance of power in global AI development.
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