Top Senate Democrats have written an open letter to President Donald Trump, urging him to reconsider his decision to allow artificial intelligence chip sales to China. The deal, which allows Nvidia and AMD to sell advanced AI chips to China in exchange for a 15% cut of revenue from the sales, has raised concerns about national security.
The letter warns that the deal would “run counter to U.S. national security interests” and could strengthen China’s military capabilities. It also criticizes Trump’s decision as a “reckless plan to trade away U.S. technology leadership.”
In response, the Trump administration appears to be brushing aside the lawmakers’ concerns. However, it has already become clear that China is not welcoming Nvidia back with open arms.
China’s authorities have ordered major tech companies, including ByteDance, Alibaba, and Tencent, to suspend Nvidia chip purchases until a national security review is complete. The decision comes after reports of regulators in China urging tech companies to avoid buying U.S. companies’ chips.
The Senate Democrats’ request for comment on the deal was not immediately returned by AMD, but Nvidia spokespersons have defended the H20 chip, saying it would help America attract developers worldwide and win the AI race.
Source: https://www.cnbc.com/2025/08/16/senate-democrats-letter-trump-advanced-ai-chip-sales-china.html