AI chips export policy sparks reaction

Trump officials threaten to resign as Nvidia export deal allows China access to a restricted AI chip with a 15 percent tax on proceeds.

Trump AI chip flip-FLOP

President Trump and Nvidia moved to export certain AI chips to China, with a 15 percent tax on the proceeds. Nvidia redesigned the H20 to meet export rules by lowering training power while pushing memory bandwidth higher, making it strong in asking questions of AI models but weaker at training. Legal experts said the plan could clash with export-control law, but Nvidia and AMD have agreed to the terms for now and are not pursuing a challenge.

The central question is whether allowing China access to the H20 helps Chinese firms catch up with US leaders. Supporters say the policy balances national security with business realities, while opponents warn it could undermine AI safety and push China to depend on domestic options like Huawei when needed. The debate shows how policy momentum can outpace legal clarity and safety concerns.

The piece argues that beating China has become the driving aim of US AI policy, sometimes at the expense of broader safety considerations. It suggests that relying on tax power and export controls as policy tools bypasses Congress and creates a fragile precedent for unilateral action.

A deeper worry is that the real danger may be losing control of future AI systems, not simply giving rivals an edge. The piece cautions against rushing deployment or weaponizing AI, and it urges policymakers to weigh speed against safety and governance, even amid a heated strategic contest.

Highlights

Policy choices now will shape AI progress and global stability for years to come.