Trump's AI Chip Deal with China Sparks Republican Worries

In a move that has stirred up some controversy, former President Donald Trump has given the green light to Nvidia for selling its advanced AI chips to China. This decision has not sat well with some Republicans, who are worried about China gaining an upper hand in the AI race.

The Deal and Its Implications

The deal involves Nvidia's H200 chips, which are more powerful than the H20s previously sold to China. In exchange, the U.S. government would get a 25% cut of the sales. This is a step up from the earlier agreement, where less powerful chips were sold to China with a 15% revenue share.

China's response to this proposal has been positive, according to Trump's social media post. However, experts are raising concerns. They believe that giving China access to these better chips will reduce America's lead in hardware and help China improve its AI models and other technologies.

Republican Concerns

Some of Trump's Republican allies share these concerns:

• Sen. Lindsey Graham expressed his worries, stating that if the chip sales accelerate China's military capabilities, he would oppose the deal.
• Sen. Josh Hawley also weighed in, emphasizing the importance of constraining China's access to American technology to win the AI race.

The U.S. House Select Committee on China echoed these concerns, stating that the H200 chips could help China catch up to America in total compute. They also warned that China might use the technology to strengthen its military capabilities and surveillance.

Diverging Views Among Republicans

Not all Republicans are against the deal, though. Sen. Thom Tillis expressed a more lenient view, suggesting that as long as the use of the chips is monitored, he doesn't have a problem with the sale.

Bipartisan Support for Restrictions

Meanwhile, there is bipartisan support for slowing China's access to advanced chips. Sen. Pete Ricketts introduced legislation to deny export licenses for advanced chips to China and other foreign adversaries for at least 30 months. Sen. Tom Cotton, one of the bill's co-sponsors, stressed the importance of protecting American AI innovation from China.

White House Stance

The White House has stated that the Trump administration is committed to ensuring the dominance of the American tech stack without compromising national security.