Trump government officials are studying additional restrictions on the sale of Nvidia Corp. For China, according to people familiar with the subject heard by Bloomberg, who emphasized that conversations are in very early stages, while the new team works in political priorities.
As a result, Nvidia’s shares have a strong drop, about 6%, in the $ 120, in the American stock market.
Authorities are analyzing the possibility of expanding restrictions to include Nvidia’s H20 chips. These chips are a reduced scale product designed to fulfill existing US restrictions on China shipping and can be used to develop and perform artificial intelligence software and services.
The sources heard by Bloomberg, in turn, added that a decision on any restrictions is probably very far away, as the Trump government is just beginning to increase staff in relevant departments. Nominated to Trump’s secretary Howard Lutnick, chosen to lead the agency that supervises chip trade restrictions, said during a confirmation hearing on Wednesday that it would be “very strong” in semiconductor controls, without providing further details .
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A White House spokesman did not immediately respond to a comment request made by Bloomberg. An Nvidia spokesman said in a statement that the company “is ready to work with management while seeking its own approach to AI.”
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A decision to tighten restrictions on Nvidia would be a new climb of tensions between the two largest economies in the world. This occurs while the US government and technology industry respond to evidence that China is more advanced in the AI race than expected.
For Nvidia, which has been under restrictions on what it can sell in China since 2022, an extension of the rules would further impair its revenue in the largest semiconductor market. She argued that restrictions reinforce the Chinese determination of becoming independent of US technology and will weaken American companies – two things that go against business objectives.
“The boundaries defined by the Biden government are based on performance levels achieved five years ago,” the company said in the statement.
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Nvidia chips, while the most sought after technology in the AI boom, are under an even more intense scrutiny after Chinese startup Deepseek launched a new artificial intelligence model that, according to her, rivals the performance of OpenAi offers, Google from Alphabet Inc. and Meta Platforms Inc. The Chinese company said its system was built by a cost fraction and used older nvidia chips.
The potential threat to the comparative advantages of US companies in industry including Microsoft, Nvidia, Oracle Corp. and Google, eliminating a total of nearly $ 1 trillion in market value on Monday. Microsoft and OpenAI are investigating whether the output of data from OpenAi technology was obtained unauthorized by a group linked to DeepSeek, according to people familiar with the subject heard by Bloomberg.
(com Bloomberg)
