On Sunday, Futurum Group CEO Daniel Newman endorsed investor Gavin Baker’s argument that allowing Nvidia Corp. (NASDAQ:NVDA) to sell older-generation AI chips to China could serve U.S. national security interests.
Analysts Push Controlled Nvidia GPU Exports To China
Baker argued on X that allowing China to purchase less advanced U.S. chips could reduce the likelihood that Beijing would develop more sophisticated domestic alternatives that might eventually surpass American technology.
“The argument for selling deprecated GPUs to China: Selling them less advanced GPUs than we have in America decreases the odds that they develop more advanced GPUs than America,” Baker wrote, calling the strategy “Pro national-security.”
Newman amplified the post, writing, “Hear ye, hear ye. A very reasonable approach to how we should handle Nvidia and other advanced AI chips being sold to China.”
Nvidia China Chip Sales Face Growing Political Scrutiny
The comments come as Sen. Chris Coons (D-Del.) pressed the Commerce Department over conflicting statements surrounding Nvidia’s H200 AI chip exports to China.
Commerce Secretary Howard Lutnick told lawmakers in April that the U.S. had not yet allowed such sales, while Nvidia CEO Jensen Huang previously indicated approvals had been secured from both U.S. and Chinese regulators.
Coons, citing national security concerns, requested details on export licenses, shipments and pending approvals, warning that advanced AI chips could strengthen China’s technological and military capabilities.
AI Chip Export Debate Highlights US-China Tech Tensions
The debate underscores a broader policy divide over whether Washington should fully block semiconductor exports or maintain controlled sales of older hardware to retain leverage over China’s AI development.
For Nvidia, the issue carries major financial implications, as China previously accounted for more than one-fifth of its data center revenue.
Price Action: Nvidia closed at $198.45 on Friday, down 0.56% and slipped another 0.17% to $198.12 in after-hours trading, according to Benzinga Pro.
Benzinga Edge Rankings place NVDA in the 97th percentile for Quality, with the stock maintaining a strong upward trend across short, medium and long-term price performance metrics.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Robert Way via Shutterstock
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