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Nvidia announced an agreement with Saudi Arabia on Tuesday on the development of the kingdom Artificial intelligence Opportunities, a sign of its expanded global strategy.
The partnership goes beyond the usual Western cooperation of the AI leader and may serve as a litmus test for future US export policy with countries that maintain close ties with Washington and China.
But Exports of chip The landscape just became a little more cloudy.
As Nvidia CEO Jensen Juan was in Saudi Arabia by announcing Blackwell Deal, Trump’s administration has released a new round of AI’s Restrictions on China.
The Department of Trade issued a warning from the use of US chinese models and highlighted the “sabotage tactics” and supplying supply chains for smuggling.
The release also highlighted the Chinese technological giant HuaweiMarking the use of the company Rising chips “Anywhere in the world” violation of export control.
The new export restrictions occurred a few days after the US and China agreed to stop the majority of tariffs to each other, and add another layer of control for NVIDIA for flight with a white home, also eliminating “The Rule of Diffusion AI“
Nvidia refused to comment on new export elements on Wednesday.
The AI diffusion rules introduced earlier this year by Biden’s administration to control how AI’s software and chips can be divided across the borders, with strict export restrictions to China and other high -risk countries.
Separate Trump administration requirements providing that Nvidia and Amd Get the government’s permit before exporting advanced chips to China will remain firmly in place.
Trade commerce stated that in the future a complete replacement of the rules of diffusion will be announced.
Chips and trade
President Donald Trump He continues to express his desire for the United States to remain leader of the II, trying to avoid the basic technology from China’s hands.
This made the role of Nvidia in the AI global race, potentially making the company a key chip for trading in future trading talks for Trump.
Instead of broad global restrictions, Trump administration examines a bilateral negotiation model where advanced AI chips can be a tool in the country’s trade agreements.
This shift can make even more uncertainty for NVIDIA, Bernstein’s analyst has warned.
“The signing of several bilateral agreements will probably take a lot of time,” said the extension, adding that the new approach could be “potentially worse than the current diffusion basis.”
Nvidia Jensen Huang CEO estimates China’s $ 50 billion in the Chips Market, and although the company still finds ways to sell the country legally relevant chips, the US simultaneously strengthens restrictions on countries that can re-export advanced technologies to Beijing.
Citi analysts have warned of assuming such transactions elsewhere, noting: “We remain reasonable in duplication of such success in other countries, thus, the risk of tougher access to us remains for other key countries.”
Regulatory solutions
For Nvidia Navigation on Export in the USA has become a high game game in adaptation
Whenever new restrictions are imposed, the company responded, developing reduced versions of their chips such as H20 and L40. These chips remain powerful enough to refer to the Chinese technological giants, being slightly below the normative thresholds.
The key issue for NVIDIA investors is no longer whether the company can sell chips around the world, this is whether the Lapels bilateral trade agreements will create a predictable business.
If the US is accepting a more transaction approach to AI chips, Nvidia may be negotiations on different rules for different countries, which complicates long -term strategic planning.
At the same time, China’s rapid progress in the development of internal alternatives – especially with Huawei and SMIC – suggests that any gaps left Nvidia can be quickly filled.
In April, a visit to Washington Juan called Huawei “one of the most formidable technology companies in the world.”
Trump lobbying
Juan was opened in his opposition to severe chips, warning that control over US companies could arise too aggressively.
“If we lose this ecosystem for our competitors, it is almost impossible to return it,” Juan said on a recent trip to Washington.
Juan also worked behind the scenes to push for a more flexible trade policy.
Last month, he attended a private dollar-dollar dinner with Trump, which is more broadly lobbying to ensure Nvidia continues working in key international markets.
So far, Nvidia remains caught in the middle: a vital US technology leader, who is too important to cut off, but too powerful to stay unregulated. Whether the last shift in politics will help or interfere with its global ambitions depend on the following steps with Washington and how China reacts.
