Key takeaways:

• The Trump administration is contemplating new restrictions on Nvidia’s chip exports to China.
• Nvidia CEO Jensen Huang is scheduled to meet President Trump this Friday amidst growing US-China AI competition.
• China’s DeepSeek has recently launched a competitive AI model, spooking investors and impacting Nvidia's stock prices.

The South China Morning Post reported that the Trump administration is in the early stages of discussing potential restrictions on Nvidia’s sales of its H20 chip, specifically designed for the Chinese market. With the move coming in response to concerns over China's rapid advancements in artificial intelligence (AI), the administration's deliberations signal a shift in emphasis on export controls that were initially introduced during the Biden administration.

Two U.S. lawmakers from the House Select Committee on China have also expressed support for these discussions, urging the administration to consider the national security implications of allowing exports to Chinese companies, particularly after Reuters highlighted recent advancements by DeepSeek, a Chinese startup that has launched a competitive AI model, R1, that raises questions about the United States' technological edge in AI.

As the Hill notes, this meeting between Trump and Nvidia's Huang follows a week marked by significant volatility in the tech sector, particularly for Nvidia, whose stock prices fell nearly 17% as investors reacted to the rising competition from DeepSeek. The company's performance has spurred concerns that their chips might face decreased demand if DeepSeek's model proves efficient at a fraction of the cost typically associated with AI development.

The upcoming meeting comes at a crucial time, as the Trump administration considers additional measures to secure the U.S. technological landscape from strategic adversaries. Nvidia has indicated readiness to collaborate with the administration regarding AI policies, emphasizing their compliance with existing regulations while navigating the evolving regulatory environment. As highlighted in a statement, the company remains committed to exploring ways to address national security interests while fostering innovation in the tech sector.

For ongoing updates, keep an eye on articles from USA Today, which continues to monitor these developments closely.