＂Tomahawk Missile Of AI＂ - Trump BLOCKS China’s Nvidia Deal In AI Arms Race POWER Move
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Summary
Trump officials torpedoed NVIDIA's push to export AI chips to China. What does this mean for the future of AI chips in China and why does it matter? Today's episode is all about how China could benefit from AI chips from NVIDIA.
Transcript
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So let me go to the story. Trump officials torpedoed NVIDIA's push to export AI chips
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to China. Rob, I think you got a clip on this one as well.
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Shortly before President Trump met with Xi in South Korea, an urgent issue emerged. Trump
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wanted to discuss a request by NVIDIA's chief executive office, CEO, to allow sales of new
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generation of artificial intelligence chips to China. A current and former administration
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official said greenlighting the export of NVIDIA's Blackwell chips would be a
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seismic policy shift, potentially giving China, the U.S. biggest geopolitical competitor,
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a technological accelerant. Huang, the CEO who speaks to Trump often, has lobbied relentlessly
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to maintain access to the Chinese market. Go ahead, Rob, if you can play this.
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President Donald Trump on Sunday said he will allow NVIDIA in Beijing to make deals on AI chips,
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but said he will not allow NVIDIA's most advanced semiconductors to be sold to China.
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This announcement follows earlier indications from Trump that he was open to discussing
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export controls on NVIDIA's leading Blackwell chips. In a 60 Minutes interview that aired on
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CBS on Sunday night, Trump was asked about China's interest in buying the world's most advanced
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semiconductors, especially NVIDIA's flagship Blackwell AI chips. Interviewer Noro O'Donnell asked Trump if he
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would allow NVIDIA to sell their most advanced chips to China, and the president replied,
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quote, no, we won't do that. However, Trump said he will let Beijing deal with NVIDIA, noting that the
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American AI chip maker is the, quote, prime company in the world for that, end quote, and added, quote,
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we will let them deal with NVIDIA, but not in terms of the most advanced. After the two leaders met face-to-face
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in South Korea, Trump told reporters that there were no talks about Blackwell's. President Trump
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said, quote, we did discuss chips, and they are going to be talking to NVIDIA and others about
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taking chips, and we make great chips. The president added that he will have a word with NVIDIA CEO
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Jensen Wong, and said further discussions will be between China and NVIDIA with the U.S.
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President Trump wasn't. Brandon, what do you have with this? Does this concern you?
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No, I mean, I'm glad that he's saying that we can't. To the better chips. Yeah,
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that we're not going to send the Blackwell chips, but I am concerned that they're still going to end
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up there, because I remember in Biden's administration, he also put a ban on sending NVIDIA chips to
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China, but they still ended up there. So I don't know if that's on part of the company, because I
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know Jensen was advocating to send these chips to China, but I don't know. I think that it's common
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sense to the highest magnitude to not send them to China. Like, all the most advanced and important
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things to the future economy are going to be done with these chips. So, and I hear people on TV
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saying, oh yeah, we should probably send them there so they aren't forced to go out on their own and
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make their own in like a hostile way. But no, I completely disagree with the notion or the argument
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of sending the most advanced chips to China for sure. Well, there's two ways to look at it, right?
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The H20 chip is the slightly lesser chip that they're allowed to send to China. Now, what does that
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mean? That means China builds its own data centers with the chips inside China. Now,
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you take a look at deals that have been struck, like what OpenAI struck the deal with Amazon,
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because they wanted access to Amazon's data center through the cloud so that they could take advantage
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of 200,000 black wells running or H20 black wells running on Amazon's data center. So how China gets
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access to it is two ways. One, they build their own data center and they want the good chips to build
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it. The second is they're using proxy locations to do their, their intelligence resource. And if you
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don't think they're using proxy locations in other parts of the country, of the, of the world to get
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to the cloud, to do some of the work, then you're not paying attention. So it's got to be bigger than
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just the chip shipping to China. And one of the things that was pointed out, they said,
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X quote, exports of black well chips to China are worth tens of billions of dollars and to NVIDIA
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and could keep Chinese companies hooked on NVIDIA's technology. NVIDIA a buy. That's an analyst saying,
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wow, wouldn't it be great if NVIDIA's hot chips could be in China? Because now China has to depend
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on NVIDIA and they'll keep buying them from NVIDIA. And so NVIDIA is still a stock buy. Whoa.
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So that's what you see that logic. Greed is just a logic instead of long-term thinking.
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That's exactly, that's greed on that where the strategic part of it is, wait, we got to keep
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China. America first. And anybody from operating the big data centers from giving access to China
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by proxy to the processing power. But let me ask you a question. If you play China real quick,
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if I'm China right now, and how bad do you think the president and his administration would like
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to get the victory done pre-4th of July, pre-Q2 of next year, pre-celebrating the 250-year anniversary?
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Okay. So then if I'm China and I'm on their side, guess what I'm doing? What do you think
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I'm doing? Delay, delay, delay, delay, delay, delay, delay, delay, delay. And in the last week
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I say, if you give me those chips, the better chips of NVIDIA, I will agree to this, but
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I need those better chips from NVIDIA. And then what do you do?
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But if you cut the deal and say, well, they're going to get them anyway somehow.
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The other thing you have to think of is how long are they the better chips before, you
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know, technology is very difficult to slow down. They might be the better chips right
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now, but there's going to be something better that eventually happens.
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For sure, but who is going to be making the better chips then? It's probably still going
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to be NVIDIA. It's not like it's going to be that changing that dramatically. No matter
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what the new chips are going to be, they're going to want the new chips.
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AMD is behind. Intel is limping, getting loan guarantees from the federal government.
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Or even teaming up together. Like they're investing into each other right now to create
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like a flywheel of three competitors giving each other money saying, listen, one of us
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is going to get this right. And if you do, I'm going to rely on the 50 billion I've given
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Yeah, no, we have a huge head start and we have to maintain that and keep the gap growing
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stuff shrinking. Like the gap starts shrinking for a bit at a time. There's that chart
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that shows China versus America's AI development. And they started closing the gap a little
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bit, but stuff like this will keep us like, this is a nuclear arms race. You know, like
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I don't know why people don't see it that way. It's literally the nuclear weapons of the
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day. So that chart right there, I see China starts narrowing the gap, but that's a little
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So do you do it? This is what I'm trying to ask you guys. You're the dealmaker. Okay.
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You're noticing they're delaying. They want the chips. Okay. They want the better chips
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from those guys. Do you, your U.S., that deal is not done. Do you go into 4th of July
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without a China deal done if they're asking for those chips?
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Yes. The tariff deal is not done. Do you go or do you give the chips and tell Huang to
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say, you know what, you can sell some of those chips to them for the next two or three years?
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No, I don't let it. If the deal doesn't get done, it doesn't get done, but I don't let
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them do it. Because look, we are the top dog on technology. This also relates to defense.
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You know, why does Ukraine, why does Ukraine have a Jones for Tomahawk missiles? Because
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they can fly all the way to areas around Moscow to power plants and Russian targets deep and
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they're accurate, very accurate missiles. That's why they want them. Why did Israel want a lot
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of our more advanced nuclear stuff? Why did they want support with that? Why did they
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want the more advanced aircrafts? This happens in the defense world, Pat, and people need
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to understand that this chip is a Tomahawk missile in the war on AI.
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There's probably, Pat, there's probably other areas that China really needs us for. Their
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economy is not in the greatest shape right now. So there are things that the tariff does
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inflict pain on them for. So we may have leverage in other areas. So we don't have
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to, even if they delay, concede on the chips, we may be able to use other levers to pull,
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to put a deal together. And I agree with you. Optically, it would be really important to get
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Yes, for sure. No question about it. There's this event that's coming up this week with the
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America business firm that started today. Whitcoff's going to be their president. I was with Whitcoff.
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We were with Whitcoff last night in Miami. Mayor Suarez, you know, this event. A lot of
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interesting people are coming at this event. And we'll be there on Thursday. But you got
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Messi, you got Jamie Dimon, you got Mario Corino Machado, a bunch of different guys. And topic
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of discussion, I think, at this event. Tom, what are the odds that they're going to be talking
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about New York City mayoral race? What happened there?
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A thousand percent. It's going to be on, I think, Brett Baer is one of the moderators.
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How can this not be? Hey, what is the change and what is New York City leadership going to
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mean for this? And just fill in the blank. Everybody can be asked that question.
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Yeah. Anyways, I'm asking that because this is all leading to the big 2026, 4th of July
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World Cup. America's got to be, like, top shape when the World Cup comes. Because we
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have to have every, because President Trump knows optics better than anybody else we've
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had in the White House. I don't think anybody's understood optics better than him. That deal
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with China's got to get done for us to be able to, you know, sell that victory in the
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World Cup on the big stage. We'll see. We'll see what's going to happen. I do think this
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is going to be a deal that both parties will use the leverage. I wonder who is more patient.
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Typically, China's more patient in these types of situations, but we'll find out.
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