The Trump administration’s recent decision to allow Nvidia to export advanced Artificial Intelligence (AI) chips to China has generated alarm among AI industry leaders and national security experts. The move reverses key restrictions from the Biden-era export controls, permitting sales of Nvidia’s H200, the company’s second-most powerful AI chip, to Chinese buyers under certain safeguards.

The approval comes with stipulations: chips must be reviewed by a third-party lab to verify their AI capabilities, and China may receive no more than 50% of the total chips sold to American customers. The administration argues that these controlled exports will preserve U.S. market leadership while curbing China’s ability to overtake sanctioned companies such as Huawei.

Industry Leaders Warn of National Security Risks

Dario Amodei, CEO of AI firm Anthropic, voiced strong opposition during a panel on artificial general intelligence (AGI) at Davos, likening the decision to selling nuclear weapons to North Korea. He warned that exporting such high-powered AI chips could equip China with the compute resources needed to develop super-intelligent AI, with potentially profound implications for global security.

Saif Khan, former director of technology and national security at the White House National Security Council, echoed these concerns, emphasizing that the rule could substantially accelerate China’s AI capabilities. Amodei also highlighted the broader risks posed by AGI technology itself, cautioning that systems capable of surpassing human intelligence carry inherent dangers that could threaten humanity.

Administration Frames Exports as Strategic Control

Despite the concerns, the Trump administration maintains that the decision is strategically calculated. White House AI czar David Sacks explained that controlled exports of Nvidia and AMD chips could prevent Chinese competitors from outpacing U.S. firms in the advanced chip sector. By enabling partial access under regulated conditions, the administration aims to balance national security with commercial competitiveness, ensuring American companies retain market dominance while limiting potential misuse.