Trump Defends NVIDIA and AMD’s Deal with China

Former President Donald Trump stood by a contentious agreement that enables NVIDIA and AMD to bypass certain export restrictions related to 15% of their revenue from China.

“No, this is an old chip that China already has,” Trump remarked on Monday, referencing NVIDIA’s H20 processor. He added, “China already has it in a different form, in a different name, but they have it.”

He pointed out that the most advanced chips from the U.S. remain inaccessible to China, describing NVIDIA’s new Blackwell processor as “super, super advanced” technology that is quite rare. “No one has it,” he insisted, suggesting it’s about five years ahead.

The two tech giants have consented to a deal that allows them to export semiconductors under specific conditions.

During his comments, Trump positioned himself as a tough negotiator who effectively secured payments for access to the Chinese market, ensuring that U.S. technological advantages are safeguarded.

He recalled discussions with NVIDIA CEO Jensen Huang, indicating that they agreed on the 15% figure after initially discussing 20%.

“He said, ‘Would you make it 15?’ So, we negotiated a bit of a deal,” Trump explained.

He reiterated that the H20 chips are somewhat outdated, but still mentioned that there is a market for them, adding that China could easily source similar technologies from other suppliers like Huawei.

On the other hand, NVIDIA’s Blackwell chips boast over 208 billion transistors and advanced AI capabilities, delivering performance that could operate 200 million graphics processing units (GPUs).

In the past, the U.S. had restricted sales of certain chips to China out of concern that advanced technology might enhance China’s competitiveness in artificial intelligence and other fields.

Trump was keen to keep America at the forefront of technology.

He likened NVIDIA’s agreement with AMD over the Mi308 chip to how the U.S. sells fighter jets, but ensures they retain superior functionality for its own use.

“We sometimes sell fighters to other countries, giving them 20% less capability than we have,” he noted.

On Monday, AMD’s shares rose by more than 2%, while NVIDIA’s stock saw a more modest increase. Investors seemed to feel that keeping 85% of the sales revenue from China didn’t offer much profit.

Trump characterized the contract by emphasizing that he aimed to put America first, insisting the funds would be for the country, not for personal gain.

“When you say you want 20, I want the country. I just care about the country,” he stated.

However, China expressed discontent with the arrangement, with state-run media accusing the U.S. of wielding “economic leverage” after previously arguing the export ban concerned security.

Chinese officials also raised concerns regarding whether American chips might have hidden features that could facilitate espionage.

“We will follow the rules that the U.S. government sets for participation in the global market,” said an NVIDIA spokesperson, adding that they haven’t shipped H20 to China for months but hope to be able to compete globally in accordance with export control regulations.

The representative cautioned, “The U.S. cannot afford to miss out on 5G or lose its leadership in communication.” They further indicated that “the American AI technology stack could become the global standard if we race.”

Attempts to seek comments from AMD and the Chinese government have been made.