US President Donald Trump’s recent deal with Nvidia and AMD allows for the export of certain powerful chips to China, but with a twist – the US will take a 15% cut on the proceeds. Critics argue this is an unconstitutional tax and may give China a significant edge in artificial intelligence (AI).
The export clause, as stated in Article I, Section 9, Clause 5 of the Constitution, bans taxes on goods exported from one state to another or from the US to foreign countries. However, the Supreme Court has repeatedly held that this clause only applies to direct exports, not indirect ones.
Nvidia’s H20 chip, which is being made available to Chinese AI firms, is a modified version of their flagship H100 chip. While it may seem like an attempt to obey export controls while violating their spirit, critics argue that allowing China access to the stronger H20 chip could give them a significant advantage over US companies.
The debate centers around whether this will help Chinese companies, such as DeepSeek, catch up with US companies like OpenAI. Some argue that the export of the weaker H100 chip is enough to keep the US ahead, while others claim that China’s access to Nvidia’s technology could lead to a significant shift in power dynamics.
The bigger question at play is whether “beating China” on AI is important for making the future of AI go well. While some policymakers believe it’s crucial, others worry that the focus on staying ahead of China may be misguided and that the real danger lies in the uncontrolled deployment of automated systems.
As the situation unfolds, one thing is clear – Trump’s chip deal has sparked a constitutional debate over AI dominance, with implications for US foreign policy and national security.
Source: https://www.vox.com/future-perfect/458088/nvidia-trump-h20-chip-ai-china