The US House Select Committee on China is scrutinising the Trump administration's decision to allow Nvidia to resume shipments of its H20 AI chips to China. The committee suggests this move could significantly enhance China's military capabilities and AI development, potentially undermining US competitiveness.
Committee Chairman John Moolenaar expressed concern that the H20 chip, a cost-effective and powerful AI inference solution, surpasses China's domestic capabilities and would substantially boost its AI advancements. This concern comes despite the H20 being a modified version of Nvidia's AI processors, designed to comply with US export regulations. The resumption of sales follows earlier restrictions imposed due to national security concerns, sparking criticism from legislators who fear the technology could be used to strengthen the Chinese military and undermine American innovation.
Nvidia's H20 chip is compatible with the CUDA software platform, an industry standard for AI development, giving Chinese developers access to essential tools. The US government's decision to allow the sale is linked to an agreement that restores US access to rare earth minerals.
