US President Donald Trump is contemplating stricter regulations on Nvidia's sale of AI chips to China due to national security issues and the implications of DeepSeek’s new AI model. Sources indicate the administration might impose a ban on Nvidia's H20 AI processor exports to China. This is significant as the H20 chip is already a restricted version of the H100 designed to meet US regulations. If enacted, these restrictions would be the fourth initiative since 2022 aimed at controlling high-performance computing chip exports to China, potentially affecting Nvidia's profitability and US market share in the AI sector. In previous instances, China has turned to alternative AI research using less advanced semiconductors to reduce dependency on US technology. Efforts by the Biden administration to tighten export controls have reportedly been circumvented by Chinese entities through cloud platforms. Critics argue that these export controls may hinder US competitiveness without effectively restricting other nations' access to AI capabilities.

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