Following the announcement that Nvidia will be allowed to resume sales of its H20 chip to China, the Center for Data Innovation has issued a statement from Director Daniel Castro. He remarked on the decision as "a welcome course correction," noting that Nvidia designed this chip specifically to comply with U.S. export controls.
Castro criticized previous restrictions, stating, "Blocking its sale despite that compliance sent the wrong signal to both U.S. companies and global markets." He emphasized that limiting U.S. chip exports undermines American firms' competitiveness and risks losing market share to foreign competitors like Huawei. This could weaken the innovation engine behind U.S. leadership in AI and semiconductors.
He further warned against overly rigid export controls, which might push Chinese AI firms toward alternatives outside the U.S., diminishing America's influence over global AI standards and practices.
Castro advised that "The Trump administration should stay focused on policies that preserve U.S. national security while also ensuring American companies can compete in global markets and continue reinvesting in the R&D that keeps the United States at the forefront of AI innovation."
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