One Decision In Brief: Why Trump Cut an AI Chip Deal For China
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Aug 19, 2025 Donald Trump's surprising decision to allow Nvidia to sell chips to China raises eyebrows about global power dynamics. The discussion reveals the complex interplay between technology exports and national security, alongside profit-sharing arrangements that blur ethical lines. The hosts dive into the intricate U.S.-China relationship under Trump and the influence of economic factors on trade strategies. They also analyze how tech giants navigate government demands, highlighting the significant implications for international diplomacy and innovation.
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Keeping China Dependent On US Chips
- The Trump administration allowed NVIDIA to sell downgraded chips to China to keep China dependent on US technology rather than let it fully develop its own.
- Richard Dearlove suggests dependence may be preferable strategically despite risks of eventual Chinese advancement.
Weigh Risk Against Supplier Leverage
- Balance technological risk against strategic advantage when exporting sensitive tech to rivals.
- Consider that supplying kit may retain supplier advantage even if some capabilities leak over time.
US Government Taking A Cut
- Trump asked NVIDIA to give the US a share of profits from China sales, initially seeking 20% and settling at 15%.
- Dearlove finds the profit-extraction unusual and inconsistent with typical American capitalist norms.