Trump warned Senate Democrats to rethink chip sales in Chip

Six Senate Democrats on Friday released an open letter President Donald Trump to review its decision to resolve technology giants Nvidia and Dilated micro devices to sell AI semiconductor chips to China in exchange for 15% of sales revenue.

The letter – signed by senators Chuck SumerDN.Y.; Mark Warner, D-VA.; Jack Reed, Dr; Jeanne Shaheen, DN.H.; Christopher Coons, D-Del.; and Elizabeth Warren, D-Mass-Beed in response to August 11 Trump’s message This NVIDIA and AMD will pay the US government a 15% reduction in chip sales revenue in China in exchange for export licenses.

“Our national security and military readiness relies on American innovators, inventing and producing the best technologies in the world, and to maintain this quality advantage in sensitive areas. The United States has historically succeed in maintaining and building this advantage because of our ability to deny opponents access to these technologies.”

“The desire shown in this Agreement to negotiate America’s competitive advantage, which is crucial to our national security in exchange for what is actually a commission for the sale of AI activation technology to our main global competitor, is the reason for serious concern,” the letter continues.

Senators also warned that the sale of advanced AI chips – more specially, AMD’s NVIDIA H20 and Mi308 chips – can help to strengthen its military systems, a statement that NVIDIA denies.

In a statement to the CNBC spokesman for NVIDIA, he said: “The H20 will not improve the military capabilities of anyone, but it would help America to attract developers around the world and win the AI race. The H20 ban is worth the US taxpayers, with no benefit.”

The letter from the Senate Democrats also requires a detailed response from the administration until Friday, August 22, on the current transaction including NVIDIA and AMD, as well as all similar arrangements that are made with other companies.

“We are calling on your administration again to quickly turn the course and abandon this reckless trading plan for American technological leadership,” the letter said.

A request for a comment from the White House and AMD was not returned immediately.

Although Trump allowed chip sales to resume, it has already become clear that China is not welcoming NVIDIA back with open arms, instead calling on technology companies In order not to buy the chips of US companiesAccording to a Bloomberg report.

“We hear that this is a difficult mandate and that (in fact, the authorities are) stopping additional H20 orders for some companies,” CNBC Qingyuan Lin, a senior analyzer that covers China in Bernstein, told CNBC Qingyuan Lin.

In a reportInformation said regulators in China ordered large technology companies, including Bytedance, Alibabaand Tencent to stop NVIDIA CHIP purchases until the national security review has completed.

– CNBC’s Kristina Partsinevelos contributed to this report