President Trump on AI: Tells Nvidia CEO Jensen Huang "You're taking over the world, I don't know what you're doing here"

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President Trump on AI: Tells Nvidia CEO Jensen Huang "You're taking over the world, I don't know what you're doing here"

In a significant development, China's cyberspace regulator has instructed companies, including Alibaba Group Holding, to halt orders for Nvidia's RTX Pro 6000D chip. This directive comes amidst ongoing trade tensions between the United States and China, as well as Beijing's efforts to reduce reliance on foreign technology . The RTX Pro 6000D chip, designed to avoid triggering US restrictions on sales of advanced AI chips to China, was set to be used in workstations and data centers. However, the directive from the Cyberspace Administration of China has led to a cancellation of existing orders and a halt to testing of the chip . Nvidia's shares slid 2.7% in US trading following the announcement, while rival Advanced Micro Devices fell nearly 1% . The move is part of China's broader strategy to wean off foreign hardware and boost domestic alternatives, while also protesting US export curbs that have effectively barred its firms from buying the best foreign chips . Nvidia CEO Jensen Huang expressed disappointment with the restrictions, stating, "I'm disappointed with what I see, but they have larger agendas to work out between China and the United States," during a press briefing in London . He is expected to discuss the issue with President Donald Trump at a state banquet hosted by the British government . The US has restricted Nvidia's most advanced chips due to concerns about China's access to advanced AI technology that could provide a military edge. Nvidia has designed chips like the RTX Pro 6000D to comply with these restrictions, but the latest directive from China further narrows the options for Chinese customers . China's regulators have also targeted Nvidia for alleged antitrust breaches stemming from its 2020 acquisition of Mellanox Technologies, and have launched an anti-dumping investigation targeting semiconductors made by US companies . This assertive stance by Beijing is seen as a bargaining chip in ongoing trade negotiations with the US . While China's latest move is a show of confidence in its domestic supply chains, it is also likely to have a chilling effect on foreign companies operating in the country. Nvidia, despite having gotten Washington's official green light for some H20 chip exports, has not executed those shipments due to Chinese authorities' discouragement of its use . The ongoing trade tensions and regulatory challenges highlight the complex geopolitical landscape in which global tech companies operate. As Nvidia and other tech giants navigate these challenges, investors should remain vigilant for potential impacts on revenue and market share .