Trump’s AI chip deal ‘creates new category of corporate risk’

U.S. President Donald Trump’s deal with Nvidia to give the U.S. government a cut of the firm’s sales in exchange for resuming exports of banned AI chips to China has overturned decades of U.S. national security policy and created an entirely new category of corporate risk, Reuters reports. The move has attracted bipartisan criticism, with lawmakers warning that it risks the creation of a pay-for-play framework for the sale of sensitive technologies to U.S. adversaries. “Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities,” said U.S. Representative John Moolenaar, a Michigan Republican who chairs the House Select Committee on China.