Trump AI deals sparks national security concern | Political News

President Donald Trump’s deal to permit the U.S. to obtain 15% of Nvidia and AMD gross sales from China has sparked national security warnings.

The Chinese authorities’s payout to the U.S. is reportedly half of a deal to secure export licenses for semiconductors. In April, the Trump administration blocked the sale of superior laptop chips to China over national security issues, but Nvidia and AMD announced in July that Washington would allow them to restart gross sales of the H20 and MI308 chips, that are utilized in artificial intelligence development.

President Trump confirmed the phrases of the unprecedented association during a Monday press convention. President Trump initially acknowledged that he wished 20% of the gross sales income when Nvidia requested to promote the “obsolete” H20 chip to China

The president credited Nvidia CEO Jensen Huang with bargaining him down to 15%. “So we negotiated a little deal. So he’s selling an essentially old chip,” Trump said.

Beyond the legal implications, the deal has also raised national security issues among both congressional events. According to a number of members of Congress, there’s fear that American technology might help enhance its adversary’s AI capabilities at a time when both are competing for dominance.

Rep. Raja Krishnamoorthi, a top Democrat on the House Select Committee on the Chinese Communist Party, acknowledged that agreeing to the deal exhibits that America’s national security may very well be purchased for the correct price.

“The administration cannot simultaneously treat semiconductor exports as both a national security threat and a revenue opportunity,” he said. “By putting a price on our security concerns, we signal to China and our allies that American national security principles are negotiable for the right fee.”

“Our export control regime must be based on genuine security considerations, not creative taxation schemes disguised as national security policy,” he said. “Chip export controls aren’t bargaining chips, and they’re not casino chips either. We shouldn’t be gambling with our national security to raise revenue.”

Representative John Moolenaar, the GOP chair on the House Select Committee on the Chinese Communist Party, said that the deal raises “questions about the legal basis.”

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“Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities,” explained Moolenaar.

Representative Don Bacon told NewsNation that the deal is a “mistake.” He said the U.S. was in an “intellectual war, a technology war with China.”

“We’ve got to realize we’re in an intellectual war, a technology war with China, and we’re in an AI competition. Having Nvidia provide this technology to China is a mistake,” he explained. “China getting our chips is not a good deal.”

“We follow rules the U.S. government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” Nvidia wrote in a assertion to the AP. “America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”