Trump faces heat on AI chips

The Hill

4 days ago

A group of former national security officials and tech policy advocates called on Commerce Secretary Howard Lutnick to reverse course in a letter Monday, as several Democrats and at least one key Republican voiced concerns over the decision.
'[W]e believe this move represents a strategic misstep that endangers the United States' economic and military edge in [AI]—an area increasingly seen as decisive in 21st-century global leadership,' the letter reads.
The Trump administration initially restricted sales of Nvidia's H20 chips to China in May, but the chipmaker announced earlier this month that it was taking steps to sell the chips again after receiving assurances from the government that its licenses would be granted.
Lutnick indicated the decision was part of a broader rare earth deal with Beijing, while arguing that they were only receiving Nvidia's 'fourth best' chip.
However, this has done little to assuage concerns. Monday's letter argued the H20 is not an outdated chip and can still accelerate China's AI capabilities, while limiting the number of chips available to the U.S.
It also suggested the move would likely weaken the effectiveness of export controls and encourage Beijing to seek more concessions from Washington.
Reps. Raja Krishnamoorthi (Ill.), the top Democrat on the House Select Committee on the Chinese Communist Party, and Gregory Meeks (N.Y.), the top Democrat on the House Foreign Affairs Committee, similarly expressed concerns Sunday that the administration is using export controls as a 'bargaining chip.'
'This approach risks eroding the credibility of our export controls regime, blurs the line between economic and security priorities, and sends a dangerous signal that critical guardrails are up for negotiation,' the lawmakers wrote in a letter to Lutnick.
The two Democrats suggested they 'no longer have confidence' the administration is following the 'rigorous, evidence-based interagency process' required to determine export controls under the law.
'It is clear that this Administration is gambling with our national security and our economy all for the sake of President Trump's trade war that is harming American families, workers, and consumers,' they added.