China’s advancement in artificial intelligence (AI), following the launch of its AI startup DeepSeek, which has captured global attention, is now the focus of the U.S. The U.S. is concerned that China is catching up in AI technology and making progress after importing Nvidia chips.
Keeping these concerns in mind, US President Donald Trump has imposed restrictions on the export of its H20 AI chips to China. The U.S. aims to maintain its lead over China in artificial intelligence (AI) technology.
The US government has imposed these rules on its major AI chipmaker firm, Nvidia, preventing it from selling these high-tech chips to China as part of a broader effort to keep the most advanced technology out of China’s hands and maintain the US’s lead in the AI race.
As per the reports, the U.S. House Select Committee on China said in a report that “it has sent a formal letter to Nvidia demanding answers about sales to China and Southeast Asia to examine whether and how its chips ended up powering DeepSeek’s AI models—despite U.S. export restrictions.”
The US and China both want to be global leaders of AI in the AI race, and a part of that, the US government is worried that China could use Nvidia’s advanced AI chips to strengthen its military. Since the year 2022, the US has banned the sale of Nvidia’s most advanced AI chips to China.
This decision by the Trump administration has cost Nvidia the loss of $5.5 billion in its sales. These actions are part of the U.S.’s efforts to keep China from getting cutting-edge technology and to stay ahead in AI and military capabilities. This trade war between the two big countries has created a challenge for Nvidia, as it loses sales in China, a major market.
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