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World of Software > Software > Nvidia’s Power Play: How Jensen Huang Got Trump to Rethank The China Ai Chip Ban
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Nvidia’s Power Play: How Jensen Huang Got Trump to Rethank The China Ai Chip Ban

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Last updated: 2025/07/17 at 1:14 PM
News Room Published 17 July 2025
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Welcome to Ai decoded, Fast company‘S weekly newsletter that breaks down the most important news in the world of ai. You can sign up to receive this newsletter every week here.

Nvidia’s Huang Says Chip Bans Aren’T The Way to Deal With China

Nvidia Founder and Ceo Jensen Huang has ben active on the government relations and lobbying front, and now he’s Got somenting big to show for his efforts: the trump administics has agreed to lift a ban on Selling Nvidia H20 AI Chips to China.

Huang Met with Leaders in Bot Washington and Beijing, Arguing that Ai Revolution is a tide that will lift all boats – hat ai technology can boost business production, RAISE The Standard Owing GDP for Both the US and China. He Emphasized that the best way for America to maintain an edge in the ai race is to ensure the world’s ai models and apps run best on chips made by a us-based company.

The US (Under Biden) Initially Began Restricting Sales of Nvidia’s most powerful chips to china in an effort to Slow Beijing’s Ai Ambitions. The Trump Administration Later Doubled Down, Effectively Banning Sales of the H20 Back in April. As a result, nvidia reported a loss of about $ 2.5 billion in sales during its Quarter Ending in April, and Projected it would miss out on another 8 billion in the Quarter Ending in July.

Huang Apparently Persuaded The Trump Administration to Reverse Course. His argument likesly Sounded Something like this: “Our mission, properly expressed, is that in order for america to have ai leaderica to make is to make surek The World So that Amazing Developers, Including The Ones in China, are already to build on the american tech stack so that ai runs best on the American tech stack, ”Huang said during interview Zakaria. Huang also noted that haalf of the world’s ai researchers “are in China and chinese.”

Huang seems to be suggesting that the US can retain technological dominance by controlling the platform ai runs on – Simimillar to how it maintenance finance Financial Dominance By Encedi IS Dollar. There may be some truth to that. But it raises important questions: What does such control actually mean? Will the us be able to dictate how the chinese use the chips? No- No more than it did when Deepsek used the H20 to build its world-class models. Is Huang Implying That The Us Could Collect Information About Chinese Ai Activities Through these chips (as the US Once Accused China of Doing Through Huawei)? That seems very doubtful.

There’s no doubt that nvidia and its sharehlders bene the world’s ai is bills on its chips and software – but is america really batter off? And if huang truly believes the best ai chips should be restricted, doesn’T it follow that he’ll also ask the trump administration for permission to sel China it is most popular

Fears grow that the US government will use ai to surveild

SIX Months Into a Chaotic Second Trump Presidency, New Reports have emerged suggesting the government is Increasing in interested in using ai tools to track and profile us residences. According to multiple whistleblowers and insurances, agents of elon musk’s dog are actively working to build a century a center Sensitive.

The washington post Reported in May that Doge is Rapidly Constructing a Centralized Database That Includes Social Security Numbers, Medical Records, and Tax Files – DOING SO with Regard for Fore Fore Fore Fore Fore Fort Data Privacy Rules Rules, Without standard oversight or even interaction agreements.

From the outset, dog has pushed past barriers and sidelined individuals to Gain access to data stored at the treasury, office of perceonnel managment, social second administation, sociality and haman services, Departments of Education and Labor, Reports the Brookings Institution

Meanwhile, Concerns are also also growing about how other agencies may be using ai to expand surveillance capables. Propublica Reported this week that the internal revenue service is now developing a computer program that would give class immigration and customs enforcement (ice) departation officers unpartaged ACESS to CONFIDENEL TAX Data Belonging to Millions of American Taxpayers, Including their home addresses. In the past, ice requested Irs data only for individuals it was actively investment – Typically no more than a dozen at a time. The new system could serve as a mass surveillance tool, passibly using ai, to identify new departation targets. Due process may be a secondary concern.

Adding to the unease, Fedscoop Reported Last Week that The General Services Administration is Considering Using an ai model developed by elon musk’s xai to process the personal data of American citizens.

Palaantir (cofounded by trump ally Peter Thiel) has become deeply embedded within agencies across the federal government. Its ai is used for data integration, analysis, and decision-making at defense and intelligence agencies, as well as fema, ice, and hahs. Critics have raised concerns about the breadth and depth of data Palaantir can access, and the lacj of transparency Regarding how its systems function.

After 9/11, Palantir Began Addressing The Government’s Urgent Need to Make Sense of the Vast Volumes of Intelligence data it was collected on Potential Terrorist and Events Both Domestically and Events. Since then, the use of Palaantir’s Platform has only grown –nd it could easily be leveraged to form Deep profiles on regular amenican citizens.

Aws launches a one-stop shop for enterprise ai agents

Amazon’s Aws Cloud Division is Placing a Big Bet on Ai Agents. At this week’s aws summit in new york City, the company unveiled “AI agents and tools,” a new section with the acquisted marketplace designed as a kind of concierge service for businesses looking to buy, And manage ai agents. The store will feature agents from AWS, as well as third parties like anthropic, IBM, perplexity, and salesforce. Typically, AI Agents Can Store Large Amounts of Information About A Company and Its Workflows, and Can Reason Through Tasks.

For existing aws customers, the platform will likely simplife the process of integrating ai agents with ai models –allowing both to reside within the same secure cloud environment as their data. Amazon Aws is Bundling Everything Companies Need – Databases, Security tools, It Support, and Deployment Infrastructure – Into One Streamlined Experience. Businesses will be able to descibe their automation needs in plain English to an ai-posred search tool and receive customized recommendations on which agents are best suited for the Job.

Gartner predicts that agents will automate half of all business decisions by 2027. However, building custom agents from scratch can be a Major challenge for corporate it departments, often required signal infrastructure and integration work. The New Aws Agent Platform and Marketplace could help eliminate the Hurdles.

AWS is optimistic about the potential. “It under the way software is bill,” said Aws vp for agentic Ai Swami Sivasubramanian at the Announcement. “It also also introduces a host of new challenges to deploying and operating it, and potentially mostly important, it changes how software interactions with the world –nd how we interact with softwaare.”

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