U.S. lawmaker opposes Nvidia’s AI chip sales to China

It could help China develop AI models that support its military and compete with U.S. technology, says Republican Representative Moolenaar

The chairman of the House Select Committee on China on Friday raised concerns about the decision to allow Nvidia to resume sales of its H20 AI chips to China.

In a letter to U.S. Commerce Secretary Howard Lutnick, Republican Representative John Moolenaar said the move could help China develop AI models that support its military, censor citizens, and compete with U.S. technology.

Nvidia said earlier this week it received assurances from the U.S. government that it could resume shipments of the H20 graphics processing unit to China. The chip is a key source of revenue for Nvidia, the world’s most valuable company.

The decision signals a possible easing of U.S. restrictions on AI exports to China.

“The Commerce Department made the right call in banning the H20,” Moolenaar wrote in the letter. He urged the agency to reconsider the approval for shipments to China.

Nvidia shares turned negative following the news. The company declined to comment. The Commerce Department did not immediately respond to a request for comment.

The H20 was initially restricted in April under a U.S. rule aimed at preventing China from acquiring advanced AI chips for national security reasons. Lawmakers from both parties have questioned the policy shift since it was reported earlier in the week.

Monitoring Desk
Monitoring Desk
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