Senate Democrats Urge Trump to Halt AI Chip Sales Deal With China
A group of six Senate Democrats has called on President Donald Trump to reverse his decision allowing U.S. chipmakers Nvidia and Advanced Micro Devices (AMD) to sell advanced AI semiconductors to China in exchange for 15% of revenue from those sales.
The lawmakers — including Chuck Schumer, Mark Warner, Jack Reed, Jeanne Shaheen, Christopher Coons, and Elizabeth Warren — issued an open letter warning that the deal risks undermining national security by giving China access to critical AI-enabling technology. They argued that such concessions could weaken America’s technological edge in sensitive military and strategic domains.
The senators expressed particular concern about Nvidia’s H20 and AMD’s MI308 chips, noting that they could strengthen China’s military capabilities. Nvidia, however, rejected that claim, stating that the H20 is not designed for military applications and instead could have boosted U.S. competitiveness in the global AI race.
The letter demanded a detailed response from the administration by August 22, outlining the terms of the deal and clarifying whether similar arrangements are being made with other companies. “Trading away America’s technology leadership for short-term financial gain poses serious risks to our future security,” the senators wrote.
While the administration dismissed the criticism, reports suggest China has already instructed several of its tech giants — including ByteDance, Alibaba, and Tencent — to pause new Nvidia chip orders pending a government review. Analysts say this move reflects Beijing’s increasing push to reduce reliance on U.S. technology.
