Trump warned by top Senate Democrats to rethink advanced AI chip sales to China
The letter — signed by Senators Chuck Schumer, D-N.Y.; Mark Warner, D-Va.; Jack Reed, D-R.I.; Jeanne Shaheen, D-N.H.; Christopher Coons, D-Del.; and Elizabeth Warren, D-Mass. — was in response to an Aug. 11 announcement by Trump that Nvidia and AMD would pay the U.S. government a 15% cut of revenue from chip sales to China in exchange for export licenses.
"Our national security and military readiness relies upon American innovators inventing and producing the best technology in the world, and in maintaining that qualitative advantage in sensitive domains. The United States has historically been successful in maintaining and building that advantage because of, in part, our ability to deny adversaries access to those technologies," the letter states.
"The willingness displayed in this arrangement to 'negotiate' away America's competitive edge that is key to our national security in exchange for what is, in effect, a commission on a sale of AI-enabling technology to our main global competitor, is cause for serious alarm," the letter continues.
Senators also warned that selling advanced AI chips — specifically Nvidia's H20 and AMD's MI308 chips — to China could help strengthen its military systems, a claim that Nvidia denies.
In a statement to CNBC, a Nvidia spokesperson said: "The H20 would not enhance anyone's military capabilities, but would have helped America attract the support of developers worldwide and win the AI race. Banning the H20 cost American taxpayers billions of dollars, without any benefit."
The letter from Senate Democrats also requests a detailed response from the administration by Friday, Aug. 22, regarding the current deal involving Nvidia and AMD, as well as any similar arrangements being made with other companies.
"We again urge your administration to quickly reverse course and abandon this reckless plan to trade away U.S. technology leadership," the letter states.
A request for comment from the White House and AMD was not immediately returned.
Despite Trump allowing chip sales to resume, it has already become clear that China isn't welcoming Nvidia back with open arms, instead urging tech companies to avoid buying U.S. companies' chips, according to a Bloomberg report.
"We're hearing that this is a hard mandate, and that [authorities are actually] stopping additional orders of H20s for some companies," Qingyuan Lin, a senior analyst covering China semiconductors at Bernstein, told CNBC.
In a separate report, The Information said regulators in China have ordered major tech companies, including ByteDance, Alibaba, and Tencent, to suspend Nvidia chip purchases until a national security review is complete.
—
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Caseware Announces Strategic Leadership Expansion to Further Accelerate Innovation, Growth and Customer Success
World-class leadership team poised to capitalize on market demand and drive next phase of growth David Marquis Toronto, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Caseware™, a global leader in AI-powered and cloud-enabled audit, financial reporting and data analytics solutions for accounting professionals, today announced its executive leadership team evolution, as the company further accelerates growth in the rapidly evolving accounting technology space. The newly appointed leadership team brings deep expertise in SaaS, artificial intelligence and accounting technology, with a strong track record of scaling enterprise software businesses and delivering customer value. 'Great companies evolve with purpose,' said David Marquis, Caseware chief executive officer. 'Caseware is positioned for its next chapter of innovation and impact. Our platform and people are aligned to our vision to power trust in the global economy.' Assembled over the course of the calendar year, this team spans critical functions - R&D, Go-to-Market, Finance and Operations - and represents decades of leadership in digital transformation, customer engagement and strategic execution. Sam High (CTO) and Andrew Smith (CPO) onboarded in Q1 2025, while Ericka Podesta McCoy (CMO) and Mike Jahoda (CCSO) onboarded in Q2 2025. Chris Nagy (CFO & COO) and Jason Rushforth (CRO) will onboard in Q3 2025. Their shared focus is on driving AI-led innovation that elevates audit quality, increases accounting workflow efficiencies, accelerates auditor effectiveness and enables exceptional client service. 'David has built a world-class team that positions Caseware to lead in AI and cloud innovation,' said Alexander Johnson, director at Hg, Caseware's majority investor. 'This leadership foundation sets the stage for sustained growth, stronger customer outcomes and continued market leadership in accounting technology.' Caseware appreciates the substantive value created by its outgoing executives for their leadership and impact during the company's transformation journey and their continued support during the transition. With this strengthened leadership foundation, Caseware is uniquely positioned to accelerate its mission of being the accounting professional's AI-powered platform of choice to drive efficiency and unlock growth. To learn more, visit our website. Attachment David Marquis CONTACT: Elise Sallis, VP, Head of Global Communications Caseware
Yahoo
15 minutes ago
- Yahoo
FTSE 100 LIVE: Markets mixed as Zelensky and European leaders head to Washington for war talks
The FTSE 100 (^FTSE) and European markets were mixed in early trade on Monday as Ukrainian president Volodymyr Zelensky and a handful of European leaders head to Washington DC following president Donald Trump's meeting with Russian leader Vladimir Putin in Alaska on Friday. Trump said that Ukraine will not be able to join Nato as part of a peace deal, but that Zelensky can opt to end the war "if he wants to". The US president also ruled out the possibility of Ukraine regaining Crimea. US special envoy Steve Witkoff, who was in Alaska, told reporters on Sunday that Russia will allow the US and Europe to give Ukraine security guarantees, however it's not clear what these will be. Oil prices moved slightly higher on Monday morning as traders weigh a potential end to the conflict. London's premier index rose 0.2% in early trade. Mining stock Endeavour (EDV.L) and defence stock BAE Systems (BA.L) led the index higher. The DAX (^GDAXI) in Germany fell 0.3%, retracing gains made last week. The CAC 40 (^FCHI) in Paris dipped 0.4%. US stock futures also fell, pointing to losses when markets open at 2.30pm BST. Lionesses 'surprise' victory weighs on Entain One of the UK's biggest bookies has said it lost out on winnings paid in the women's Euros final as patriotic fans got behind the Lionesses, while the men's Club World Cup drew in 'surprising' global support. Entain, which owns betting shops Ladbrokes and Coral, said the tournaments were among the most bet-on sporting events of the year so far. England's Lionesses were victorious in the Women's Euro 2025, having beaten Spain on penalties in last month's final. So-called 'patriotic punters' typically get behind their own team or country by betting on them winning. If results go in the favour of gamblers, this can result in losses for bookies who have to pay out the winnings. Rob Wood, the group's finance boss and deputy chief executive, told the PA news agency: 'We did lose a little bit of money on that match. 'But because it was a draw at 90 minutes, that wasn't a bad outcome.' Coming up this week: Jay Powell at Jackson Hole Our US team writes: The investing world will turn its attention to northwestern Wyoming in the week ahead, with Federal Reserve Chair Jerome Powell set to give his most important policy speech of the year on Friday at the annual Jackson Hole Economic Symposium. Held each year at the Jackson Lake Lodge in Grand Teton National Park, the Kansas City Fed's annual meeting often serves as a crucial set piece in the Fed chair's calendar that signals key shifts in the central bank's thinking. Ahead of Powell's speech — likely to be his last as Fed chair — markets are placing the probability the Fed will cut rates by at least 0.25% next month at around 85%. Clues from Powell about the speed and depth of the cycle the Fed is about to embark on will be the week's biggest market-moving event. UK house sellers cut asking price by average £10,000 Pedro Goncalves writes: Homes are selling for an average of £10,000 below asking price as sellers try to secure a sale in a buyers' market. The average price of a newly listed home fell by 1.3% in August to £368,740, a £4,969 decline. Sellers have now lowered asking prices by over £10,000 since May, a figure Rightmove (RMV.L) analysts said reflects growing pricing realism amid elevated levels of market inventory and a more cautious buyer base. 'Savvy summer sellers have read the room,' said Colleen Babcock, property expert at Rightmove (RMV.L). '[They] are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers. The strategy is working.' The property site said that despite broader price moderation, buyer demand remains robust, supported by improving affordability and a slight cooling in mortgage rates. Read more on Yahoo Finance UK Good morning! Hello from London. It's Lucy Harley-McKeown — ready to bring you the markets and economics news for Monday. This morning we've already had the Rightmove UK house price update (more on that later). As earnings season slows Palo Alto Networks (PANW) reports results in the US. Otherwise we'll be looking at the potential moves in the Russia-Ukraine conflict and the effect that's having on investor confidence. Let's get to it. Lionesses 'surprise' victory weighs on Entain One of the UK's biggest bookies has said it lost out on winnings paid in the women's Euros final as patriotic fans got behind the Lionesses, while the men's Club World Cup drew in 'surprising' global support. Entain, which owns betting shops Ladbrokes and Coral, said the tournaments were among the most bet-on sporting events of the year so far. England's Lionesses were victorious in the Women's Euro 2025, having beaten Spain on penalties in last month's final. So-called 'patriotic punters' typically get behind their own team or country by betting on them winning. If results go in the favour of gamblers, this can result in losses for bookies who have to pay out the winnings. Rob Wood, the group's finance boss and deputy chief executive, told the PA news agency: 'We did lose a little bit of money on that match. 'But because it was a draw at 90 minutes, that wasn't a bad outcome.' One of the UK's biggest bookies has said it lost out on winnings paid in the women's Euros final as patriotic fans got behind the Lionesses, while the men's Club World Cup drew in 'surprising' global support. Entain, which owns betting shops Ladbrokes and Coral, said the tournaments were among the most bet-on sporting events of the year so far. England's Lionesses were victorious in the Women's Euro 2025, having beaten Spain on penalties in last month's final. So-called 'patriotic punters' typically get behind their own team or country by betting on them winning. If results go in the favour of gamblers, this can result in losses for bookies who have to pay out the winnings. Rob Wood, the group's finance boss and deputy chief executive, told the PA news agency: 'We did lose a little bit of money on that match. 'But because it was a draw at 90 minutes, that wasn't a bad outcome.' Coming up this week: Jay Powell at Jackson Hole Our US team writes: The investing world will turn its attention to northwestern Wyoming in the week ahead, with Federal Reserve Chair Jerome Powell set to give his most important policy speech of the year on Friday at the annual Jackson Hole Economic Symposium. Held each year at the Jackson Lake Lodge in Grand Teton National Park, the Kansas City Fed's annual meeting often serves as a crucial set piece in the Fed chair's calendar that signals key shifts in the central bank's thinking. Ahead of Powell's speech — likely to be his last as Fed chair — markets are placing the probability the Fed will cut rates by at least 0.25% next month at around 85%. Clues from Powell about the speed and depth of the cycle the Fed is about to embark on will be the week's biggest market-moving event. Our US team writes: The investing world will turn its attention to northwestern Wyoming in the week ahead, with Federal Reserve Chair Jerome Powell set to give his most important policy speech of the year on Friday at the annual Jackson Hole Economic Symposium. Held each year at the Jackson Lake Lodge in Grand Teton National Park, the Kansas City Fed's annual meeting often serves as a crucial set piece in the Fed chair's calendar that signals key shifts in the central bank's thinking. Ahead of Powell's speech — likely to be his last as Fed chair — markets are placing the probability the Fed will cut rates by at least 0.25% next month at around 85%. Clues from Powell about the speed and depth of the cycle the Fed is about to embark on will be the week's biggest market-moving event. UK house sellers cut asking price by average £10,000 Pedro Goncalves writes: Homes are selling for an average of £10,000 below asking price as sellers try to secure a sale in a buyers' market. The average price of a newly listed home fell by 1.3% in August to £368,740, a £4,969 decline. Sellers have now lowered asking prices by over £10,000 since May, a figure Rightmove (RMV.L) analysts said reflects growing pricing realism amid elevated levels of market inventory and a more cautious buyer base. 'Savvy summer sellers have read the room,' said Colleen Babcock, property expert at Rightmove (RMV.L). '[They] are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers. The strategy is working.' The property site said that despite broader price moderation, buyer demand remains robust, supported by improving affordability and a slight cooling in mortgage rates. Read more on Yahoo Finance UK Pedro Goncalves writes: Homes are selling for an average of £10,000 below asking price as sellers try to secure a sale in a buyers' market. The average price of a newly listed home fell by 1.3% in August to £368,740, a £4,969 decline. Sellers have now lowered asking prices by over £10,000 since May, a figure Rightmove (RMV.L) analysts said reflects growing pricing realism amid elevated levels of market inventory and a more cautious buyer base. 'Savvy summer sellers have read the room,' said Colleen Babcock, property expert at Rightmove (RMV.L). '[They] are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers. The strategy is working.' The property site said that despite broader price moderation, buyer demand remains robust, supported by improving affordability and a slight cooling in mortgage rates. Read more on Yahoo Finance UK Good morning! Hello from London. It's Lucy Harley-McKeown — ready to bring you the markets and economics news for Monday. This morning we've already had the Rightmove UK house price update (more on that later). As earnings season slows Palo Alto Networks (PANW) reports results in the US. Otherwise we'll be looking at the potential moves in the Russia-Ukraine conflict and the effect that's having on investor confidence. Let's get to it. Hello from London. It's Lucy Harley-McKeown — ready to bring you the markets and economics news for Monday. This morning we've already had the Rightmove UK house price update (more on that later). As earnings season slows Palo Alto Networks (PANW) reports results in the US. Otherwise we'll be looking at the potential moves in the Russia-Ukraine conflict and the effect that's having on investor confidence. Let's get to it.
Yahoo
15 minutes ago
- Yahoo
Chinese Stock Index Rises to Decade High as Investors Dump Bonds
(Bloomberg) -- A gauge of Shanghai-listed stocks closed at its highest level in a decade, as cash-rich local investors plow into a market that has surged amid easing trade tensions with the US. The Shanghai Stock Exchange Composite Index jumped 0.9% to close at 3,728 on Monday, its strongest finish since August 2015, according to Bloomberg-compiled data. That cements a 20% turnaround since an April selloff, when US President Donald Trump's sweeping tariffs roiled global markets. Trump extended a tariff truce with China last week. The US-Canadian Road Safety Gap Is Getting Wider A Photographer's Pipe Dream: Capturing New York's Vast Water System Festivals and Parades Are Canceled Amid US Immigration Anxiety A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Princeton Plans New Budget Cuts as Pressure From Trump Builds The rally reflects a rising sense of optimism among small investors, flush with near record-high savings and increasingly rotating out of bonds. Those investors were scarred a decade ago, when a precipitous stock market crash led Beijing to unleash state-backed funds to prop up share prices and left a bitter memory for many investors. There have been false dawns since then, but over the past decade Chinese stocks onshore have badly underperformed benchmarks of shares in the US, Asia and even Europe, long considered a global laggard for equity investors. Fund managers in China are now hoping that the current rally has enough behind it — ranging from hopes about artificial intelligence to government moves to bolster growth — to stand the test of time. 'We're confident that this rally has legs,' said Wang Huan, a fund manager at Shanghai Zige Investment Management Co. Ltd, pointing to sources of optimism including abundant liquidity, government moves to stem price wars and hopes that China's economy is bottoming out. China's stock market has been helped by investors shifting their investments from fixed income, as they scale back expectations of monetary easing and respond to Beijing's decision to restart taxes on interest payments made on government bonds or those of financial institutions. China's 10-year bond yield was up four basis points at 1.78% on Monday, while 30-year yields were around six basis points higher at 2.11%. The country's 30-year bond futures suffered their biggest drop since March. The latest monetary policy report from China's central bank showed policymakers are in no rush to aggressively ease. The Shanghai Composite remains a long way from the heady days of 2015, when a leverage-induced buying spree pushed the index as high as 5,166 before the bubble burst. The all-time high was set in October 2007. Trade Tensions Ease The buzz in China's share market is a stark change from just a few months ago, when fears that the world's two largest economies were entering a prolonged — and painful — trade war rattled markets around the world. The rally is part of a global rise in share prices: Stocks in the US and Indonesia set new highs last week, helping push an MSCI index of global equities to a record. The recovery in China's stock market has led to a frenzy of trading activity. Turnover on mainland exchanges was more than 2.7 trillion yuan ($376 billion) on Monday, the second highest turnover ever following an Oct. 8 peak, according to Bloomberg-compiled data. That followed mainland Chinese traders buying a record HK$35.9 billion ($4.6 billion) worth of stocks in Hong Kong on Friday, as the risk-on mood in mainland equities spilled over across the border. There has also been a surge in loans for stock purchases, a sign that investors are taking on leverage to join the rally. The amount of margin debt taken out to buy stocks climbed to the highest level since 2015 last week, and is now about 10% away from hitting an all-time high. Other policy tweaks have helped direct investors to local stocks. China strengthened its oversight of taxes on overseas stock trading gains, and said it will subsidize interest payments on eligible personal consumer loans. The Shanghai index's 11% gain this year has beaten the CSI 300 Index, another closely watched onshore gauge which is up around 8%. A bigger weighting of high-performing bank stocks in the Shanghai Composite has helped drive the outperformance, in large part due to buying by insurance funds. --With assistance from Julia Zhong. (Updates stock and bond prices. Adds details of latest central bank policy report.) What Declining Cardboard Box Sales Tell Us About the US Economy Americans Are Getting Priced Out of Homeownership at Record Rates Living With 12 Strangers to Ease a Housing Crunch Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan How Syrian Immigrants Are Boosting Germany's Economy ©2025 Bloomberg L.P.
