Report: NVIDIA Could Encounter Stricter China GPU Export Regulations Under Trump Administration

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NVIDIA Corporation, a leading chip manufacturer, experienced a significant decline in its stock price following a report from Bloomberg. The article revealed discussions within the Trump administration regarding the potential implementation of stricter export control measures affecting NVIDIA’s GPU shipments to China. NVIDIA’s graphics processing units (GPUs), recognized as highly valuable assets globally, were central to a recent $1 trillion drop on Wall Street. This market turmoil was largely driven by concerns over diminishing GPU demand, particularly in light of cheaper AI development options uncovered by Chinese company DeepSeek.

Trump Administration Considers New Export Controls on NVIDIA’s H20 GPUs

Since the launch of ChatGPT by OpenAI, NVIDIA’s GPUs have come under intense scrutiny from the US government. In an effort to curb technology transfers to China, the Biden administration instituted multiple sanctions that hindered NVIDIA’s ability to sell advanced GPUs to the region. Specifically, in 2022, restrictions on the H100 and H200 GPU models were introduced. As a workaround, NVIDIA created downgraded variations, the H800 and A800, but further regulations in 2023 blocked these models from reaching the Chinese market as well.

According to Bloomberg’s report, the Trump administration is contemplating extending existing sanctions to encompass NVIDIA’s H80 GPUs. These particular GPUs are designed specifically for the Chinese market and possess lower performance metrics compared to their H100 counterparts. Currently, NVIDIA’s latest GPU lineup, known as Blackwell, is in distribution. As a result, the predominant training of AI models globally relies heavily on the more powerful H100 and H200 GPUs.

Speculative reports from Taiwan suggested as early as September of last year that NVIDIA had ceased accepting orders for the H20 AI accelerators from Chinese companies. Although the underlying reasons for this decision were not definitively stated, it was widely assumed that an expansion of US sanctions could be imminent. Despite their reduced specifications—41% fewer cores and 28% lower performance than the H100 models—these GPUs were projected to generate nearly $12 billion in revenue for NVIDIA.

This situation escalated following the impact of DeepSeek’s AI models on the stock market, leading to substantial financial losses on Monday. Investors are now grappling with uncertainties about whether the anticipated multi-billion dollar investments in AI data center infrastructures will materialize, particularly as DeepSeek’s offerings emerged as viable alternatives to American AI technologies at considerably lower costs.

While the White House has yet to comment on the allegations made by Bloomberg, NVIDIA expressed its willingness to cooperate with the new administration concerning its AI strategy. Previous GPU restrictions by the Trump administration significantly limited the number of countries eligible to acquire NVIDIA’s products without facing limitations. In reaction to this, NVIDIA issued a robust statement, claiming that government actions were detrimental to global advancements in AI.

NVIDIA’s efforts to respond to DeepSeek’s competitive performance included reaffirming that their products are fully compliant with export control regulations. As of the latest trading session, NVIDIA shares had decreased by 5.7%, although they managed to recover some losses following the initial report.

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