Former US President Trump’s recent actions indicate a significant shift in global alliances, potentially moving away from Russia and towards China, especially in the pivotal sector of Artificial Intelligence (AI). This change is most visible in how the US is approaching China’s AI advancement. NVIDIA, responding to increased demand from China, has ordered 300,000 high-end computer chips from Taiwan Semiconductor Manufacturing Company (TMSC). This transaction, involving the advanced H20 chipset, occurred soon after Trump had previously restricted NVIDIA from engaging in business with China, citing national security concerns. The quick removal of this restriction, within a span of three months, has sparked significant discussion about Trump’s evolving strategy regarding China.
The US and China are currently engaged in an AI race. The emergence of DeepSeek, an AI model built in China, triggered a wave of competition. Trump had previously restricted US suppliers like NVIDIA from providing chips to China. However, the White House lifted these restrictions quickly. NVIDIA can now sell in China, as reported by Newsweek. Jensen Huang, NVIDIA’s CEO, noted that the US government had guaranteed the renewal of licenses for selling H20 chips in China. This has led to a surge in demand for NVIDIA chips in China. In response, the American firm has contracted with a Taiwanese company for 300,000 H20 chips.
The core question is why Trump reversed course on China. This shift appears to be connected to the strained relationship between Trump and Putin, particularly due to the situation in Ukraine. Trump’s response to a Russian official’s statement included the deployment of nuclear submarines, underlining the deterioration of ties. This shift may indicate a strategic move by Trump, seeking to find an alliance with China rather than Russia. Furthermore, there are indications that Trump might visit Beijing before the end of the year.
In the AI landscape, the US is currently ahead of China. Stanford University’s ranking places the US in first place, with China in second. Experts worry that the US’s aid could help China achieve the top position. A spokesperson for the Chinese embassy has emphasized China’s commitment to human-centric principles in the development of AI.