Why the Bay Area is key to the new US push to win the international AI race

President Trump has announced a significant policy shift allowing Nvidia to sell its advanced H200 AI chips to approved customers in China, effectively lifting a previous export ban imposed due to national security concerns. This decision includes a 25% surcharge on sales, which experts have criticized as illogical given the context of the deal.

US startups, including Oakland-based Brimstone, are intensifying efforts to develop domestic sources of critical raw materials essential for technology, an area historically dominated by China. This initiative is part of a broader strategy to enhance supply chain resilience and reduce dependence on foreign sources.

DeepSeek, a Chinese AI startup, is reportedly developing its next AI model using several thousand Nvidia Blackwell chips that were smuggled into China through third-party countries. This development raises concerns regarding compliance with international trade regulations and the implications of using restricted technology.

The former chief executive of Nexperia, a Dutch semiconductor company, revealed that Dutch officials were aware for years of the company's Chinese owner’s intentions to transfer technology to China. This revelation follows the Dutch government's seizure of Nexperia in September, amid rising concerns over technology security.

China has added AI chips from domestic companies, including Huawei and Cambricon, to its government-approved supplier list for the first time, coinciding with the Trump administration's decision to allow Nvidia to export its H200 AI chips to China. This marks a significant shift in China's approach to AI technology procurement amid ongoing geopolitical tensions.

President Trump has authorized Nvidia to sell its advanced H200 AI chips to approved customers in China, effectively lifting a previous export ban that was imposed due to national security concerns. This decision marks a significant shift in U.S. technology export policy, reversing decades of restrictions on technology sales to China.

China is positioning itself as a leader in global artificial intelligence (AI) governance, aiming to establish comprehensive regulations that could shape international standards and practices in AI. This initiative reflects China's strategic intent to influence the global AI landscape and ensure its technologies align with its national interests.

The Trump administration has approved the sale of Nvidia's H200 artificial intelligence chips to China, marking a significant shift in U.S. policy regarding technology exports. This decision follows extensive negotiations and aims to facilitate the use of these advanced chips by Chinese companies, which have been restricted due to national security concerns.