Trump’s Nvidia Blockade: US-Only Blackwell Chips Spark Global Tech Arms Race

Washington draws hard line in silicon sand—Nvidia's next-gen Blackwell processors now reserved exclusively for American companies under new Trump administration policy.

The Geopolitical Gambit

Advanced AI chips becoming the new oil—and the White House just nationalized the premium reserves. Chinese tech giants left scrambling for alternatives while US firms get front-row access to computing horsepower that could redefine entire industries.

Market Shockwaves

NVDA shares volatile as analysts debate long-term implications. Supply chain experts predicting global chip wars intensifying—because nothing says 'free market' like government-mandated allocation of critical technology.

Digital assets surging as investors hedge against traditional market disruptions. Bitcoin approaching new highs while decentralized computing projects see renewed interest—because when governments pick winners, smart money looks for exit doors.

The new protectionism smells suspiciously like old protectionism—just with better semiconductors and the same tired zero-sum thinking that always leaves everyone poorer except the bureaucrats keeping score.

TLDR

• President Trump stated that Nvidia’s most advanced Blackwell AI chips will be reserved exclusively for U.S. companies and will not be sold to China or other countries.
• Trump said he will allow China and other nations to deal with Nvidia for less advanced chips, but the top-end semiconductors remain off limits.
• Nvidia shares rose 1.4% to $205.31 in premarket trading on Monday following Trump’s comments.
• The restrictions may be tighter than previously indicated, potentially affecting countries beyond just China, though Nvidia recently announced plans to supply over 260,000 Blackwell chips to South Korea.
• Nvidia CEO Jensen Huang stated the company has not sought U.S. export licenses for China because Beijing has made clear it doesn’t want Nvidia operating there currently.

President Donald TRUMP drew a clear line Sunday on Nvidia’s chip exports. The most advanced Blackwell semiconductors will stay in American hands.

Nvidia's advanced Blackwell chip for artificial intelligence WOULD not be available to ‘other people,’ US President Trump said. More here: https://t.co/D4A1hQi0V3

— Reuters Business (@ReutersBiz) November 3, 2025

Trump made the announcement during a CBS “60 Minutes” interview and in separate comments to reporters aboard Air Force One. When asked directly if he would allow Nvidia to sell their top chips to China, he answered “No, we won’t do that.”

The president said he will permit other countries to work with Nvidia on less powerful chips. “We will let them deal with Nvidia, but not in terms of the most advanced,” Trump explained.

He emphasized that the cutting-edge technology belongs to America alone. “The most advanced, we will not let anybody have them other than the United States,” Trump told CBS.

Nvidia’s stock responded positively to the news. Shares climbed 1.4% to $205.31 in premarket trading Monday morning.

NVIDIA Corporation, NVDA

The company recently became the first to surpass a $5 trillion market capitalization. This milestone came after Trump previously signaled openness to discussing export controls during his meeting with Chinese President Xi Jinping.

Questions About International Sales

The new restrictions appear tighter than what U.S. officials had previously suggested. Trump’s comments raise questions about chip access for countries beyond China.

Just last Friday, Nvidia announced a major deal with South Korea. The company plans to supply more than 260,000 Blackwell AI chips to Samsung Electronics and other Korean businesses.

Trump did not rule out selling downgraded versions of Blackwell chips to Chinese companies. He kept the door open for less capable variants but remained firm on the top-tier technology.

The possibility of any Blackwell sales to China has drawn fire from Washington hawks. Republican Congressman John Moolenaar compared such sales to “giving Iran weapons-grade uranium.”

Trump had mentioned discussing Blackwell chips with Xi Jinping before their South Korea summit last week. The topic never came up during their face-to-face meeting.

Nvidia’s Position on China

Nvidia CEO Jensen Huang addressed the China situation at the company’s GPU Technology Conference. He said Beijing has blocked Nvidia from operating in the Chinese market.

“They’ve made it very clear that they don’t want Nvidia to be there right now,” Huang stated. The CEO added that Nvidia hasn’t sought U.S. export licenses for China because of this stance.

Huang expressed interest in potential future Chinese sales. “I hope so someday,” he said when asked about Blackwell chip exports to China at the APEC summit in South Korea.

The CEO praised the benefits of Chinese market participation. “I think it’s really good for America and it’s really good for China that Nvidia could participate in the Chinese market,” Huang said.

He acknowledged that Trump will make the final decision. Huang noted the company needs Chinese market access to fund U.S.-based research and development.

Trump praised both Nvidia and Huang during recent remarks. He called the Blackwell chips “super duper” and estimated they are “probably 10 years ahead of any other chip.”

The president described Huang as “amazing” and positioned the U.S. as an “arbitrator or referee” in potential deals between China and Nvidia.

Trump told CBS that U.S. advantages in the AI race stem from electricity production policies. “Right now, we’re winning it because we’re producing electricity like never before by allowing the companies to make their own electricity, which was my idea,” he said.

The July administration AI blueprint sought to loosen environmental rules and expand AI exports to allies while maintaining American technological superiority over China.