Trump Avoids Nvidia Blackwell Chip Discussion with Xi, Defying Expectations

During a recent meeting in South Korea, U.S. President Donald Trump hinted at a potential discussion regarding Nvidia’s advanced Blackwell chips with Chinese President Xi Jinping. However, he later clarified that the topic did not arise during their talks.

Nvidia and the Blackwell Chip

Trump referred to the Blackwell chip as “super-duper” prior to their meeting. He indicated that China would engage with Nvidia and other semiconductor companies about chip procurement, yet he confirmed that Blackwell was not on the agenda.

Nvidia’s Significant Milestone

Nvidia has recently made history by becoming the first company to achieve a $5 trillion market valuation. CEO Jensen Huang commented that the outcome of discussions between Trump and Xi would significantly impact future deals for both nations.

The State of U.S.-China Relations in Technology

The exchange of advanced technology, particularly semiconductors, remains a contentious issue. The U.S. has imposed export controls on Nvidia’s most sophisticated AI chips to China. This is largely aimed at curbing Chinese technological advancements that could bolster its military capabilities.

Current Market Dynamics

• Nvidia has been exploring a new chip tailored for the Chinese market, built on its Blackwell architecture.
• This new model would outperform the currently allowed H20 chip but will not match the full capabilities of the Blackwell chip sold elsewhere.
• While private firms in China are interested, the Chinese government has shown reluctance towards Nvidia, promoting local companies instead.

Challenges in Export Licenses

Huang revealed that Nvidia has not pursued U.S. export licenses for its latest chips due to a lack of interest from China. He emphasized the need for access to the Chinese market to fund R&D in the U.S.

Political Opposition

Both Democratic and Republican lawmakers have opposed any expansion of China’s access to advanced chips like the Blackwell. This political climate influences Nvidia’s strategy and negotiations.

Recent Export Policies

The Trump administration first prohibited the export of the H20 chip to China in April, then temporarily reversed this in July under specific conditions. Nevertheless, as U.S. restrictions eased, China has tightened its regulations on foreign chips, creating a challenging environment for Nvidia.

The Future of Nvidia in China

Despite the uncertain backdrop, there may still be room for negotiations. Sources suggest that discussions around a downgraded version of the Blackwell chip, the B30A, could emerge if Washington permits sales to China. However, skepticism remains regarding the likelihood of a quick change in China’s stance towards American chips.