Trump's AI strategy: chip export 'green lights' signal big shift
Washington, Thursday, 7 August 2025.
The Trump administration’s new AI Action Plan prioritizes rapid AI advancement, marking a sharp contrast to previous regulatory caution, especially on AI chip exports. This shift could greatly benefit companies like NVIDIA, potentially increasing international revenue. However, it also raises concerns about US dominance and fair competition, as the plan aims to counter China’s influence and promote US values in AI tech. Two Chinese citizens were arrested for illegally exporting AI chips.
AI action plan details
Unveiled in late July 2025, the Trump administration’s AI Action Plan seeks to accelerate AI development and deployment within the US and globally [1][2][3]. This initiative covers key areas such as workforce development, infrastructure enhancements, export controls, and national security [1]. A core objective involves countering China’s influence in international governance and promoting US technology standards rooted in American values [2][3]. The plan supports the CHIPS and Science Act of 2022, highlighting the importance of domestic semiconductor production [1].
NVIDIA’s potential gains
The shift towards a more open approach to AI chip exports could significantly benefit NVIDIA (NVDA:NASDAQ) [1][4]. By easing export restrictions, NVIDIA may gain enhanced access to international markets, particularly in regions where previous regulations posed challenges [1]. The US previously blocked and unblocked NVIDIA’s H20 AI chip [1]. This policy change could boost NVIDIA’s revenue potential and strengthen its competitive position in the global AI landscape, allowing the company to expand its reach and influence [1].
Competition with China
The US and China are engaged in intense strategic competition across AI hardware, algorithms, regulation, and values [2][3]. The Trump administration’s plan aims to establish a leading position in basic AI technology, fostering an ecosystem where American firms shape international standards [2][3]. This strategy involves actively competing with Chinese algorithms, especially in the global South, and ensuring that leading AI models embody American values [2][3]. The US government is also concerned about potential biases in AI, requiring companies involved in federal contracts to prove their models are free of political bias [2].
Enforcement and controls
The Trump administration intends to better enforce existing export controls, including embedding trackers in US AI chips and pressuring allies to adopt similar measures [1]. However, the US has sent mixed signals, such as imposing and then removing export controls on chip electronic design automation (EDA) tools to China earlier in 2025 [1]. Meanwhile, two Chinese citizens were arrested for allegedly exporting sensitive microchips for AI applications to China via Southeast Asia, underscoring the tensions surrounding AI chip exports [4].
Tariffs and trade tensions
Trump’s second term has been marked by increased tariffs, including a “reciprocal tariff” policy that has impacted global financial markets [5]. Tariffs on Chinese goods have risen significantly, escalating the trade war between the two countries [5]. While the AI Action Plan aims to promote US technology, these broader trade tensions could create uncertainty for companies like NVIDIA, potentially affecting their supply chains and market access [5]. The Nikkei 225 recently slumped to its lowest level since April due to Trump’s tariffs, reflecting broader market concerns [5].