Summary:
- Former President Donald Trump met with Nvidia CEO Jensen Huang to discuss China-based AI firm DeepSeek’s advancements and potential U.S. restrictions on AI chip exports to China.
- The Trump administration is considering tightening curbs on Nvidia’s H20 chips designed for the Chinese market, following earlier restrictions under the Biden administration.
- DeepSeek’s cost-effective AI model triggered a $1 trillion sell-off in U.S. tech stocks, raising concerns about China’s rapid AI development outpacing American leadership.
- U.S. lawmakers and agencies are reviewing export controls and investigating whether DeepSeek uses restricted American chips, amid bipartisan calls for stricter trade policies.
President Donald Trump met with Nvidia CEO Jensen Huang at the White House on January 31, 2025, to discuss China’s AI advancements and potential restrictions on semiconductor exports. The closed-door meeting focused on DeepSeek, a Chinese AI startup whose recent breakthroughs have intensified concerns about U.S. technological leadership.
Key developments from the meeting:
- Trump described Huang as a “gentleman” but declined to disclose specifics, stating, “I can’t say what’s gonna happen. We had a meeting. It was a good meeting.” An Nvidia spokesperson confirmed discussions centered on strengthening U.S. semiconductor and AI policy.
- The talks occurred amid plans to tighten export controls this spring, particularly targeting Nvidia’s H20 chips designed for the Chinese market. Three sources familiar with the matter indicated the Trump administration is considering blocking shipments of these chips, which comply with current Biden-era restrictions but remain capable of powering AI systems.
Context and implications:
DeepSeek’s release of a cost-efficient AI model last week triggered a $1 trillion sell-off in U.S. tech stocks, with Nvidia shares plunging 17% at one point. The Chinese firm’s rapid rise has fueled bipartisan calls for stricter export measures. Republican John Moolenaar and Democrat Raja Krishnamoorthi, leading the House Select Committee on China, urged expanded restrictions as part of a broader review of U.S. export policies.
Regulatory background:
- The Biden administration initially restricted Nvidia’s H100 AI chips in 2022, prompting the company to develop the H800 for China. Further curbs in 2023 led to the H20 variant, now under scrutiny.
- The Commerce Department is investigating whether DeepSeek utilized prohibited U.S. chips to develop its models, though no findings have been disclosed.
The meeting underscores escalating efforts to balance domestic AI innovation with national security priorities, as policymakers grapple with China’s accelerating capabilities in critical technologies.
Source: Reuters
