US Allows Nvidia Chip Sales to China to Maintain AI Dominance

In a strategic move to preserve its leadership in artificial intelligence, the United States has decided to permit Nvidia Corp.'s H20 chip shipments to China. Kevin Hassett, Director of the National Economic Council (NEC), emphasized the importance of this decision in slowing down China's domestic chip innovation.

Speaking to Fox News, Hassett highlighted the dual benefit of the decision: "One of the risks that you have to take seriously is that if China's not buying chips from us, then they're innovating, making their own chips," he explained. This approach not only sustains the US's competitive edge but also subtly curtails China's progress in developing its own semiconductor technology.