The tech sector’s buzzing over Trump’s unexpected arrangement with Nvidia, letting them sell H20 chips to China for a 15% cut of the revenue. Trump claims the H20 is past its prime but still marketable—a classic case of squeezing value from old tech. But let’s cut through the noise: this isn’t just about a president swayed by corporate lobbying. It’s a glimpse into the tangled web of geopolitics and tech ambitions.
Nvidia’s H20 emerged after the US blocked the more advanced H800 from China, a part of Biden’s strategy to stymie China’s AI growth. The reasoning? Fear of China gaining military and economic supremacy through artificial intelligence. This isn’t the first time we’ve seen this circus—political maneuvers under the guise of national security.
Graham Webster from Stanford has been digging into the real story behind these controls. Turns out, high-level officials believed AI was nearing game-changing breakthroughs, something they couldn’t let China hit first. So, they rolled out export controls in 2022 to keep China from getting their hands on cutting-edge chips. Here’s what this really means: a tech cold war that’s reshaping US-China relations and impacting global tech landscapes.
The key players behind these policies have since moved to influential roles in AI and national security. It’s a revolving door that keeps the same voices in power, just under different titles. Tarun Chhabra and Jason Matheny, once part of Biden’s team, now hold significant positions in prominent think tanks and companies influencing tech policy.
Dario Amodei from Anthropic argues for stringent export controls, believing they’re crucial for US dominance. Meanwhile, Trump’s AI czar David Sacks warns that overly strict controls could backfire, boosting China’s market share. For now, Sacks’ view seems to have traction, but Trump’s long-term stance remains anyone’s guess.
This whole saga is a reminder: when politics and tech collide, the fallout is never simple. Investors, keep your eyes peeled and skepticism intact.
