The U.S. government has decided to block Nvidia from selling its scaled-back AI chips to China, a move that could significantly impact the tech giant's business strategy and revenue. This decision highlights ongoing tensions between the U.S. and China over technology and trade, particularly in the rapidly evolving AI sector. By restricting access to advanced technology, the U.S. aims to maintain its competitive edge and national security, but it also raises concerns about the potential for further escalation in trade relations.