In a sharp escalation of US-China technology tensions, former US President Donald Trump has pledged that Nvidia’s most advanced AI chip, the Blackwell, will be reserved exclusively for American use. Speaking on CBS’ 60 Minutes and during remarks aboard Air Force One, Trump confirmed the chip would not be sold to China or other foreign countries, signalling tougher export controls than previously indicated.

The Blackwell chip represents Nvidia’s most powerful AI hardware to date and sits at the heart of America’s AI infrastructure ambitions. The decision, backed by the White House, is framed as a national security measure to maintain US technological supremacy in artificial intelligence. White House spokeswoman Karoline Leavitt said the chip would be off-limits to Chinese entities, reinforcing efforts to prevent advanced semiconductor technology from reaching geopolitical rivals.

This move comes as Beijing ramps up its own tech restrictions. China recently ordered state-backed data centres to stop using foreign-made AI chips and shift to domestic alternatives. Under this directive, projects less than 30% complete must remove foreign chips entirely, while more advanced projects will be subject to case-by-case approval. The policy is designed to accelerate China’s reliance on homegrown firms such as Huawei, Cambricon and MetaX. However, analysts note that China’s dependence on Nvidia’s mature software ecosystem poses a significant hurdle, potentially deepening the US-China technology gap.

The US has already taken steps to retain control over chip exports. Nvidia and AMD recently agreed to hand over 15% of revenue from chip sales to China in return for export licences—down from an initial demand of 20%. This compromise allows the continued sale of Nvidia’s H20 and AMD’s MI308 chips, which remain vital for AI development. But with the Blackwell chip, the US is drawing a firmer line.

China, for its part, is responding with targeted subsidies. Data centres using domestic AI chips are seeing energy costs cut by as much as 50%, part of a wider strategy to strengthen its semiconductor sector and reduce reliance on imported technologies.

In a contrasting development, Washington recently rolled back a Biden-era rule that would have imposed sweeping AI chip export restrictions to over 100 countries. The Department of Commerce cited industry and diplomatic concerns about hampering innovation. This nuanced stance reveals a layered US strategy—tightening controls on China while continuing to cultivate AI partnerships with allies. Microsoft has been authorised to export chips to the UAE, while Nvidia and Qualcomm have invested in Indian deep-tech start-ups. As the global AI chip race intensifies, national security, technological leadership and geopolitical alliances are increasingly intertwined. The Blackwell export ban is a clear line in the sand, but also part of a broader US effort to shape global AI innovation on its own terms.

For the UK, these developments underline the strategic imperative to build a resilient AI ecosystem rooted in domestic innovation, secure infrastructure and trusted international partnerships. As AI becomes central to future economic and security landscapes, leadership will depend not only on technology but on thoughtful regulation and global positioning.

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