Jensen Huang, the CEO of NVIDIA, praised US President Donald Trump for removing a law that would have restricted the number of sophisticated artificial intelligence chips that could be sold in particular nations. At a press event at Taiwan’s Computex technology fair, he claimed the AI propagation law was a “failure.”
The concept was intended to stop China’s arms from acquiring advanced chips, according to former US President Joe Biden’s administration, and it was scheduled to take impact on May 15. There were three levels for each of the world’s countries:
- A list of allies that have no limits.
- A list of opponents who are not permitted.
- A second tier that may purchase a limited amount of cutting-edge US chips.
Notice: Available the Taiwan Office, NVIDIA to Build Taiwan’s First AI Supercomputer, and More.
However, the Trump administration   repealed the AI propagation law on May 13. Huang argued at the push conference that AI export controls may prove ineffective in preventing its advancement because the” competition in China is actually intense” and does not rely exclusively on American technology.
He even claimed that China “would love for us never to go up” because the US would reduce itself as a market rival by removing itself. According to Reuters,” President Trump realizes it’s exactly the wrong goal,” he said.
NVIDIA’s business would suffer if the AI propagation principle were to be implemented.
Huang argued that the AI propagation law may harm the US by giving China an advantage in the AI race, but he also had a vested interest because it immediately threatens NVIDIA’s company in a crucial business. He claimed at the press conference that due to various export controls they placed, their share of the Chinese market has dropped from 95 % to 50 % since the start of Biden’s administration.
Since 2022, NVIDIA has been designing cards to prevent these controls in order to keep its enterprise in the nation. The US  just restricted income of some superior cards, including NVIDIA’s H20, to China  without a license, but it is now working on a Blackwell AI device to make that condition, according to Reuters.
View: Huawei Challenges NVIDIA with New AI Chip in China.
The elimination of the AI propagation concept will even open up new opportunities for NVIDIA to expand its operations outside of China. The US intel sold 18, 000 of its most cutting-edge Artificial chips to Saudi Arabia in response, and Amazon, AMD, and other companies have since struck deals with the nation. Relationships between Saudi Arabia and the US software industry have historically been strained because of concerns that chips moved between the two nations might leak to China.
NVIDIA has long criticized the AI dispersion policy, but Anthropic backs it.
NVIDIA called the AI propagation rule misguided in January, a statement Microsoft echoed in the same month. But, Anthropic, an AI startup with billion from Amazon, endorsed the trade restrictions and even requested that they be extended. In a , argued a blog post, AI may be developed in “alignment with American values and pursuits” as opposed to China’s.
In a unique open rebuke, NVIDIA responded by firing up at Anthropic in a statement telling CNBC that” American firms may focus on innovation and rise to the challenge.” Additionally, they charged Anthropic with pushing policies to stifle competition rather than to establish authority through technology.
The US is still determined to stop China’s Artificial growth.
Worries about China persist despite the removal of the AI propagation law.
The federal government issued a warning against “allowing U.S. AI cards to be used for education and assumption of Chinese AI versions” and issued advice for US businesses on how to “protect supply chains against escape tactics” following the announcement.
These measures were described as “discriminatory” by a a statement from China’s Ministry of Commerce, and they urged the US to “immediately proper its bad practices.” In an effort to improve its place in trade negotiations, the US is considering replacing the AI propagation rule with a global licence program based on government-to-government contracts.
