Donald Trump again bars advanced NVIDIA chips for China amid fragile trade truce: Why it matters

The topic was also avoided at Trump's recent meeting with Chinese President Xi Jinping, as the two nations entered a fragile trade truce that sees the US refraining from a 100% tariff imposition, and China pausing rare-earth export controls for a year

uschinanvidiablackwell - 1 US President Donald Trump (L), Chinese President Xi Jinping (R), and an NVIDIA GB10 Grace Blackwell Superchip (centre) | Reuters, AP

Artificial intelligence giant NVIDIA's most advanced chips will not be shared with China, US President Donald Trump said, doubling down on an earlier claim by US lawmakers that Beijing would use it to modernise its military.

The chipmaker is currently one of the biggest in the business, with a $5 trillion market capitalisation. 

Speaking to reporters aboard the Air Force One, Trump indicated that the US was not keen on sharing the latest version of NVIDIA's Blackwell chips with the rest of the world.

"The new Blackwell that just came out, it's 10 years ahead of every other chip ... But no, we don't give that chip to other people," he said, as per a Reuters report.

While he has not mentioned China by name here, his comments follow concerns by US lawmakers over Beijing using the latest Blackwell chips to boost its AI progress and enhance its military capabilities.

However, he has not ruled out selling a less-advanced version of the Blackwell chips to China. 

"We will let them deal with Nvidia but not in terms of the most advanced," Trump said in a later interview with CBS News.

The topic was also avoided at his recent meeting with Chinese President Xi Jinping, as the two nations entered a fragile trade truce that sees the US refraining from a 100 per cent tariff imposition, and China pausing rare-earth export controls for a year.

However, Trump's decision to hoard the best of NVIDIA's chips for himself is expected to test the limits of the fragile truce further.

Notably, Trump's comments follow a Friday announcement by the chipmaker that it would be supplying more than 260,000 of the same Blackwell chips to the South Korean government and some of the country's biggest businesses, including Samsung Electronics.

NVIDIA's CEO Jensen Huang has also majorly pushed back against America's block on Blackwell exports to Beijing, saying that the China market is a "singular, vital, important, dynamic market, and nobody can replace that".

“It’s in the best interest of America to serve that China market. It’s in the best interest of China to have the American technology company bring ... technology to the China market ... It’s in the best interest of both countries, and I hope that policymakers will ultimately come to that conclusion," he added, speaking to reporters in South Korea's Gyeongju after his keynote speech at the APEC CEO summit, as per a CNBC report.

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