Chip Company Plotted to Send Technology to China, Ex-C.E.O. Says

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.

Europe is tightening regulations on chip security following the controversy surrounding Nexperia, a semiconductor company, which has raised concerns about the region's reliance on external suppliers. The Dutch government's actions against Nexperia have highlighted vulnerabilities in Europe's automotive chip supply chain, prompting discussions on how to enhance chip sovereignty without deterring investors.

The Bay Area is poised to play a crucial role in the Genesis Mission, a multibillion-dollar initiative launched by the Trump administration aimed at enhancing the United States' artificial intelligence capabilities amid growing competition from China. This mission will leverage federal scientific datasets to train AI models and develop AI agents, marking a significant government effort to boost innovation in this critical sector.

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.

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.