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Why Nvidia’s and AMD’s China deal with Trump could backfire

The companies making the most money from the AI boom are the ones selling the processors, such as Nvidia and AMD. On Monday those two chip giants cut a deal with the Trump administration that will allow them to sell their products into the China market. For Nvidia—the dominant provider of AI chips powering the generative AI boom—the agreement means that it can once again sell its H20 chip to Chinese developers.

It’s the latest chapter in a long saga. The Biden administration blocked the sale of Nvidia’s most powerful AI chips to China in 2022,

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