Trump blocked China from buying advanced AI chips from Nvidia. This move could reshape the global AI industry and intensify competition over who controls the future of next-generation technology.
In a statement that could reshape the global tech industry, US President Donald Trump announced that Nvidia’s most powerful artificial intelligence chips will be reserved exclusively for US companies. His comments, made during a prerecorded interview on CBS’s 60 Minutes and later to reporters aboard Air Force One, mark one of the strongest positions yet in the ongoing technology rivalry between the United States and China.
Trump explicitly said that countries like China would not be allowed access to Nvidia’s cutting-edge Blackwell chips—the company’s most advanced processors designed to power next-generation artificial intelligence models. “The most advanced, we’re not going to let anybody have them except the United States of America,” Trump told CBS. “We don’t give other people the Blackwell chip,” he said, delivering the same message to reporters as he returned to Washington after spending the weekend in Florida.
Nvidia, now the world’s most valuable company by market capitalization, has become the centerpiece of the global AI revolution. Its Blackwell chips are in high demand across industries from cloud computing and robotics to defense and healthcare, as companies race to create powerful AI systems. But Trump’s latest announcement stresses that these advanced technologies will be protected as national assets, available only to American companies.
Trump’s administration may soon tighten export restrictions on advanced US semiconductors, as previously suggested by officials, according to the comments. This means that China and potentially other nations could be completely deprived of receiving the most sophisticated AI hardware made in the United States.
For Washington, it’s part of a larger strategy: ensuring the US maintains its lead in artificial intelligence, an area that is increasingly considered the foundation of future military, economic, and technological power. The US has already imposed strict limits on chip exports to China in recent years, citing concerns that Chinese companies could use the technology to enhance their surveillance systems or develop advanced weapons.
In July, the Trump administration unveiled a new AI policy framework designed to strengthen the U.S. position in this rapidly growing industry. The plan sought to ease some regulations and promote cooperation with friendly countries, encouraging AI exports to friendly countries. The idea was to create a global network of partners that could help the US maintain a technological edge over China.
However, the latest comments suggest a shift towards even greater protectionism. Trump’s stance now appears to be in favor of keeping the most powerful technologies within US borders, even if that risks angering allies or disrupting trade relations.
Despite a tight crackdown on exports, Nvidia continues to operate globally. Just last Friday, the chip maker announced it would be supplying more than 260,000 of its new Blackwell AI processors to South Korea. Some of South Korea’s largest corporations – including Samsung Electronics – are among the recipients. The deal highlights Nvidia’s role as an important global supplier, while also revealing the fine line the company has to walk between political pressure and business opportunity.
Still, uncertainty remains over China’s access to Nvidia’s technology. In August, Trump indicated he might consider allowing Chinese companies to buy a limited or scaled-down version of Blackwell chips. That idea immediately drew reaction from lawmakers and national security experts, who argued that even a weakened version could give China a significant boost in AI development.
Asked again about this during a 60 Minutes appearance, Trump clarified that there would be no sales of the most advanced versions to Chinese companies. “We’ll let them deal with Nvidia, but not in terms of the most advanced,” he said. His comments leave open the possibility that some kind of cooperation could still happen, but only with chips that don’t pose a national security threat.
That nuance hasn’t eased concerns in Washington. Some Republican lawmakers have strongly opposed the idea of any AI chip sales to China, warning that the technology could bolster China’s military research and surveillance programs. Representative John Moolenaar, who chairs the House Select Committee on China, went so far as to compare it to the handing over of nuclear material. He said that allowing China access to Nvidia’s technology would be “akin to giving weapons-grade uranium to Iran.”
The stakes are huge. Advanced AI chips like Nvidia’s Blackwell models are the backbone of machine learning systems used to train powerful algorithms—the same kind of systems behind ChatGPT, autonomous vehicles, and advanced defense software. The country that controls access to this technology will likely control the majority of the future AI-powered economy.
Trump’s comments also come at a sensitive diplomatic moment. The US and China have been locked in a tense standoff over technology for years, with Washington accusing Beijing of intellectual property theft, unfair trade practices, and using advanced technology for military purposes. Meanwhile, China is investing heavily in its own semiconductor and AI sectors to reduce its dependence on US companies.
Trump previously suggested he might raise the AI chip issue with Chinese President Xi Jinping during a summit in South Korea last week. However, after the meeting, he said that this topic never came up in the conversation. The silence leaves open questions about whether the matter might be revisited in future talks or whether Washington’s tough stance is now a fixed policy.
On the corporate side, Nvidia finds itself caught in the middle of a geopolitical tug of war. CEO Jensen Huang said last week that Nvidia has not sought a US export license to sell into the Chinese market, noting that Beijing’s current stance on the company makes such efforts futile. “They’ve made it clear that they don’t want Nvidia to be there right now,” Huang told attendees at a developer conference. He emphasized that Nvidia needs to continue increasing its U.S.-based research and development to maintain its innovation edge—something that becomes increasingly challenging without access to large global markets like China.
Nevertheless, Nvidia’s dependence on China as both a market and supplier remains significant. Many of the raw materials and manufacturing processes required for semiconductor production are associated with Chinese companies. This interconnectedness raises the question of whether complete technological separation between the two superpowers is possible.
Trump’s approach appears to be focused on what he calls “technological sovereignty”—ensuring that the US maintains full control over critical technologies, even if it means alienating some international partners. For supporters, this policy is about national security and protecting American jobs. For critics, it risks fragmenting the global technology supply chain and slowing innovation around the world.
Economists have warned that restricting AI chip exports could have unintended consequences. While this could limit China’s immediate access to high-performance hardware, it could also prompt Chinese companies to ramp up domestic chip production—in which Beijing is already investing heavily. In the long run, such a move could create two parallel technology ecosystems: one led by the U.S. and its allies, and another dominated by China and nations aligned with it.
For now, Trump’s message is clear: America’s most powerful AI chips belong at home. His administration appears poised to tighten controls over AI technology in previously unseen ways, prioritizing national dominance over international cooperation.
The decision underscores how artificial intelligence—once a field focused on academic research and software—has evolved into a geopolitical battleground. As AI impacts industries from medicine to defense, control over the hardware that powers it could determine the balance of global power in the 21st century.
Whether this strategy solidifies America’s lead or promotes further division in the global tech economy remains to be seen. But one thing is certain: by keeping Nvidia’s Blackwell chips out of China’s hands, Trump has drawn a bold new line in the sand—one that could define the next chapter of the U.S.-China tech war.