Trump dropped the idea of splitting Nvidia after talking to Jensen Huang
By ForGeeks
Donald Trump has revealed that he wanted to split up Nvidia – the world’s largest AI company – but changed his mind after a personal conversation with its CEO Jensen Huang. He now publicly praises the businessman and endorses Nvidia’s cooperation with China.
He’s now publicly praised the businessman and endorsed Nvidia’s cooperation with China.
“What the hell is Nvidia anyway?” – Trump on his first introduction to the company
At an AI Action Plan event in Washington, D.C., Trump admitted he hadn’t even heard of Nvidia’s existence until recently. When aides told him that the company controls the entire market, he allegedly exclaimed: “They have 100 percent of the market? Who are they anyway?”
After learning that the company was headed by Jensen Huang, Trump first suggested: “Let’s split them up, let there be competition.” But after discussing it with advisers, he realized that was difficult to implement. He said that even if the best engineers were combined, it would take at least a decade to catch up with Nvidia – even if the company became inefficient.
“Then I said okay, let’s move on. And then I met Jensen. Now I understand why he’s so cool,” Trump noted.
Nvidia has received permission to sell H20 chips to China
Huang was able to convince the Trump administration to allow the export of H20 chips to China, despite a previous ban that was in place for national security reasons. These chips are considered limited in power: as Commerce Secretary Howard Lutnick noted, “they are only the fourth most powerful AI chips,” the goal is to “get China hooked on the American tech ecosystem.”
The move opened up a new source of revenue for Nvidia amid growing pressure from antitrust regulators under the Biden administration. But with Trump’s arrival and a shift in rhetoric about “unbundling” the company, expectations of lawsuits are likely to be put on hold.
Nvidia is the first company with a $4 trillion capitalization
Nvidia continues to strengthen its position amid the news. Prior to the Chinese agreement announcement, it already became the first public company with a $4 trillion market value. Given the lifting of restrictions on chip exports, that figure could still rise.
The article Trump drops idea to split Nvidia after conversation with Jensen Huang was first published on ITZine.ru.
