The U.S. government has announced new restrictions on the export of artificial intelligence chips from companies like Nvidia and AMD to China, aiming to hinder the country's advancements in AI technology. This move reflects a broader strategy by the Trump administration to combat China's growing capabilities in the tech sector.

Nvidia has halted production of its H20 graphics processing units for the Chinese market amid Beijing's crackdown on American technology due to national security concerns. This follows a government directive for local companies to stop purchasing the chips, raising doubts about Nvidia's ability to sell in China and impacting its significant annual revenue from the region. CEO Jensen Huang expressed hope for resolution but acknowledged the challenges posed by U.S.-China trade tensions.

Nvidia is working on a new AI chip built on its Blackwell architecture, aimed at outperforming its current H20 model available in China. Although U.S. President Trump has hinted at the possibility of allowing the sale of more advanced chips to China, regulatory approval remains uncertain due to security concerns. Samples of the new chip are expected to be delivered to Chinese clients as early as next month.