Nvidia CEO Jensen Huang, right, speaks alongside President Donald Trump astir investing successful America, astatine the White House successful Washington, connected April 30, 2025.
Jim Watson | AFP | Getty Images
Six Senate Democrats connected Friday released an unfastened letter asking President Donald Trump to reconsider his determination to let tech giants Nvidia and Advanced Micro Devices to merchantability AI semiconductor chips to China successful speech for 15% of gross from the sales.
The missive — signed by Senators Chuck Schumer, D-N.Y.; Mark Warner, D-Va.; Jack Reed, D-R.I.; Jeanne Shaheen, D-N.H.; Christopher Coons, D-Del.; and Elizabeth Warren, D-Mass. — was successful effect to an Aug. 11 announcement by Trump that Nvidia and AMD would wage the U.S. authorities a 15% chopped of gross from spot income to China successful speech for export licenses.
"Our nationalist information and subject readiness relies upon American innovators inventing and producing the champion exertion successful the world, and successful maintaining that qualitative vantage successful delicate domains. The United States has historically been palmy successful maintaining and gathering that vantage due to the fact that of, successful part, our quality to contradict adversaries entree to those technologies," the missive states.
"The willingness displayed successful this statement to 'negotiate' distant America's competitory borderline that is cardinal to our nationalist information successful speech for what is, successful effect, a committee connected a merchantability of AI-enabling exertion to our main planetary competitor, is origin for superior alarm," the missive continues.
Senators besides warned that selling precocious AI chips — specifically Nvidia's H20 and AMD's MI308 chips — to China could assistance fortify its subject systems, a assertion that Nvidia denies.
In a connection to CNBC, a Nvidia spokesperson said: "The H20 would not heighten anyone's subject capabilities, but would person helped America pull the enactment of developers worldwide and triumph the AI race. Banning the H20 outgo American taxpayers billions of dollars, without immoderate benefit."
The missive from Senate Democrats besides requests a elaborate effect from the medication by Friday, Aug. 22, regarding the existent woody involving Nvidia and AMD, arsenic good arsenic immoderate akin arrangements being made with different companies.
"We again impulse your medication to rapidly reverse people and wantonness this reckless program to commercialized distant U.S. exertion leadership," the missive states.
A petition for remark from the White House and AMD was not instantly returned.
Despite Trump allowing spot income to resume, it has already go wide that China isn't welcoming Nvidia backmost with unfastened arms, alternatively urging tech companies to debar buying U.S. companies' chips, according to a Bloomberg report.
"We're proceeding that this is simply a hard mandate, and that [authorities are actually] stopping further orders of H20s for immoderate companies," Qingyuan Lin, a elder expert covering China semiconductors astatine Bernstein, told CNBC.
In a separate report, The Information said regulators successful China person ordered large tech companies, including ByteDance, Alibaba, and Tencent, to suspend Nvidia spot purchases until a nationalist information reappraisal is complete.
— CNBC's Kristina Partsinevelos contributed to this report
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