White House Shifts Strategy: AI Chief Sacks Defends Chip Export Policy as Smart Move Against Huawei

White House AI chief David Sacks has defended the Trump administration’s decision to ease restrictions on AI chip exports to China, calling it a “strategic recalibration” aimed at blocking Chinese tech giant Huawei from gaining global dominance—while still keeping U.S. control intact.

🧠 Nvidia and AMD Back in Play The decision allows companies like Nvidia to resume exports of specific AI chips—such as the H20 model—that were previously restricted. According to Sacks, this will support U.S. firms’ competitiveness while weakening Huawei’s grip on the domestic market. He emphasized that critical technologies remain protected, and referred to the H20 chip as “obsolete.”

💰 Trillion-Dollar Stakes and Global Balance Sacks warned that overly strict rules could alienate U.S. allies and push them toward Chinese alternatives. “If you don’t let these countries buy American tech, you’re forcing them into China’s arms,” he said. Tech exports, he explained, are not just about commerce, but about maintaining geopolitical equilibrium.

📉 Policy Shift Follows Silicon Valley Pressure The reversal came shortly after a personal meeting between Trump and Nvidia CEO Jensen Huang. Nvidia, now the world’s most valuable company with a market cap over $4 trillion, called the decision crucial to its global operations. AMD issued a similar statement, projecting billions in revenue gains.

💼 Behind the Scenes: Chips for Rare Earths According to Treasury Secretary Scott Bessent, export restrictions on the H20 chip became a key bargaining chip in ongoing U.S.-China trade talks. In return for easing tech restrictions, China agreed to increase cooperation on rare earth minerals—critical for high-tech manufacturing. Sacks stressed that the overall strategy is to build a fully American “AI stack”—a domestic ecosystem of chips, software, and AI models. “We want all of this made here—from the chip to the code. If we make things harder for our own companies, we’re only helping China,” he concluded.

#whitehouse , #NVIDIA , #Geopolitics , #AI , #worldnews

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