The United States is ramping up efforts to maintain its lead in the global artificial intelligence (AI) race by imposing new restrictions on the export of H20 AI chips to China. This move follows concerns over China’s growing advancements in AI, especially after the launch of its AI startup, DeepSeek, which has garnered international attention.
In response to these developments, US President Donald Trump has enacted measures to curb China’s access to advanced AI technology. The restrictions specifically target Nvidia, a major AI chipmaker, preventing it from selling its high-tech H20 AI chips to China. The aim is to ensure that China does not catch up to the U.S. in the AI domain and to limit its military capabilities fueled by cutting-edge technology.
Reports reveal that the U.S. House Select Committee on China has sent a formal inquiry to Nvidia, demanding answers regarding its sales to China and Southeast Asia. The committee is investigating how Nvidia’s chips may have powered DeepSeek’s AI models, despite existing export restrictions.
Since 2022, the U.S. has banned the sale of Nvidia’s most advanced AI chips to China, fearing they could be used to strengthen China’s military. This decision has had a significant financial impact on Nvidia, resulting in a loss of $5.5 billion in sales. The ongoing trade tensions between the U.S. and China have created a challenging environment for Nvidia, especially as it loses access to China, a major market for its products.
The competition between the two countries to dominate the AI race is intensifying, and these actions are part of broader efforts by the U.S. to safeguard its technological edge in AI and military capabilities.
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