The meeting between former U.S. President Donald Trump and Nvidia CEO Jensen Huang at the White House centered around DeepSeek, a Chinese AI company, and potential tightening of AI chip exports, according to a source familiar with the matter. DeepSeek’s recent launch of a cost-effective AI model has sent ripples through the tech world, raising concerns about U.S. competitiveness in the field.
While Trump remained tight-lipped about the specifics of the discussion, calling Huang a “gentleman” and describing the meeting as “good,” the context suggests a focus on national security and economic competitiveness in the burgeoning AI landscape. The meeting comes as the U.S. government prepares to further restrict AI chip exports this spring, aiming to maintain a technological edge over China.
An Nvidia spokesperson confirmed the meeting, emphasizing the discussion’s focus on “strengthening U.S. technology and AI leadership.” The source revealed the meeting was scheduled prior to DeepSeek’s disruptive entrance into the market, but its timing underscores the urgency of addressing the potential threat posed by China’s rapid advancements in AI.
Trump reportedly believes DeepSeek’s emergence could alleviate the pressure on U.S. companies to develop low-cost AI alternatives. However, the rapid adoption of DeepSeek’s AI assistant, which quickly topped Apple’s App Store download charts, has triggered a significant sell-off in U.S. tech stocks, wiping out nearly $1 trillion in market value. Nvidia, a leading producer of AI chips crucial for developing and running AI models, saw its shares plummet by 17% at one point.
Adding to the pressure, the Trump administration is reportedly considering tightening restrictions on the sale of Nvidia’s H20 chips, specifically designed for the Chinese market. These discussions, although in early stages, reflect a continuation of efforts initiated under the Biden administration to limit China’s access to advanced computing technology. The H20 chips, designed to comply with existing U.S. export controls, are nonetheless capable of powering AI software, raising concerns about their potential contribution to China’s AI capabilities.
Two U.S. lawmakers, Republican John Moolenaar and Democrat Raja Krishnamoorthi, have also called for stricter controls on Nvidia’s AI chip exports. Their request is part of a broader review of the U.S. export control system ordered by Trump, aimed at addressing challenges posed by “strategic adversaries.” This bipartisan concern highlights the growing recognition of the strategic importance of AI and the need to safeguard U.S. leadership in this critical technology.
The Biden administration had previously restricted the sale of Nvidia’s more powerful H100 chips to China in 2022. Nvidia subsequently released the H800, a slightly less powerful variant designed to comply with the restrictions, only to face further restrictions in 2023. The introduction of the H20 last year continued this cycle of adaptation and restriction, underscoring the ongoing cat-and-mouse game between U.S. export controls and Chinese efforts to acquire advanced AI technology.
Furthermore, the U.S. Commerce Department is investigating whether DeepSeek has been utilizing U.S. chips illegally shipped to China, raising the stakes in the ongoing technological competition between the two nations. This investigation highlights the complexities of enforcing export controls and the determination of U.S. authorities to prevent China from gaining access to sensitive technologies. The outcome of this investigation could have significant implications for both DeepSeek and the broader landscape of U.S.-China relations in the realm of AI.
