Those who have paid attention to the news recently likely know that artificial intelligence is one of the most pressing issues our society faces today, not just in terms of scientific innovation but also in policy. Recently, the policy battle over artificial intelligence has come to a head over one specific product: Nvidia’s Blackwell chip, which President Donald Trump and his administration have repeatedly blocked from being exported to China.
For those who don’t know, the Blackwell chip is the name for Nvidia’s graphics processing unit (GPU) chip, which was designed specifically to be an engine for large-scale AI workloads. As of now, it is considered the most advanced and powerful AI GPU on the market, making it ideal for use cases such as training and decision-making.
How the Blackwell chip has become the center of the US/China AI race
Right now, we are in the midst of an “AI race” between the United States and China, much like the Space Race of the 1900s between the US and the USSR, where these two geopolitical and scientific superpowers are competing to achieve dominance in artificial intelligence. However, it is important to note that this is not merely a scientific endeavor but also an economic and political one, considering the massive implications that it could have.
Advanced GPUs like Blackwell have become a major point of contention in today’s AI race because this small but mighty piece of hardware is essential for some of the most complex functions of artificial intelligence, allowing AI models to be trained faster and use cases to become much more advanced. Because of this, those with access to the most advanced computing technology — currently the Blackwell chip — are the ones who are making the most considerable and rapid strides in AI innovation.
Nvidia’s incentive to sell its Blackwell product in China is obvious: there is a large, untapped market of Chinese AI developers who would purchase the type of powerful computing hardware that Nvidia sells. The company’s CEO, Jensen Huang, claimed that 50% of global AI research talent is Chinese, which represents an enormous potential windfall if the company is able to expand its market share in the People’s Republic (currently sitting at 0%, of course).
The geopolitical strife that the Blackwell chip has caused
That being said, the Trump administration has repeatedly blocked Nvidia’s requests to export the Blackwell chip to the Chinese market, claiming that giving Chinese developers access to the chip could strengthen China’s military and pose a national security risk to the United States. Although Nvidia has been allowed to have some dealings with China, including the sale of less advanced technology, such as the company’s H20 chip, President Trump has remained steadfast on the position that only US companies would have access to the “most advanced” chips, such as the Blackwell. However, with China now banning domestic firms from purchasing Nvidia’s AI chips that are available in the market, it has become a de facto AI war between the two countries, with Nvidia stuck in the middle.
Yet, China and Nvidia alike have claimed that Blackwell chips will not be used for domestic (i.e., military) use cases. “China has more than enough domestic chips for all of its military applications and has no reason to use our products for that purpose,” said an Nvidia spokesperson in a statement made to Reuters. Indeed, many of the use cases that Chinese developers are using advanced AI chips for are then turned around and exported to other countries, including the US.
Huang also warns that these restrictions may have the exact opposite effect, actually encouraging Chinese innovation. When Chinese developers are deprived of advanced computing technology developed by US companies such as Nvidia, it encourages Chinese competitors to accelerate their own development to meet this need instead. In other words, AI researchers will continue researching, and they need the computing power to support it. If this doesn’t come from US companies, they will find that power elsewhere.
One source estimates that banning all US AI chip exports to China would give the United States 31 times more computing power than China, with that advantage shrinking to less than four times more powerful if China can access the Blackwell chip. This may leave many people wondering what this means for the broader field of AI innovation. While the United States’ competitive advantage may shrink, many see this as a worthy sacrifice for the globalization of AI innovation and allowing the world’s brightest minds to work together on AI research.
Nvidia’s Blackwell chip has the potential to revolutionize AI research on an international scale, but if geopolitical strife continues to block Nvidia from selling the chip in China, it will limit the ability of global innovators to research and advance artificial intelligence technology. The future of discovery in artificial intelligence is one of global cooperation.
