According to CRN, President Trump told CBS News’ 60 Minutes program that he won’t allow Nvidia to sell its most advanced AI chips to any country outside the United States, stating “The most advanced, we will not let anybody have them other than the United States.” The statement came amid discussions about restricting Nvidia’s top chips from China, specifically mentioning the Grace Blackwell Superchip sold in the company’s GB200 NVL72 platform. However, Nvidia partners interviewed by CRN expressed skepticism, with most senior executives believing the statement was either misspoken or would never happen. The company’s stock price rose 2.17 percent following the comments, while Nvidia’s sovereign AI business is projected to generate over $20 billion this year, including major international deals like Nscale’s plan to deploy 300,000 Grace Blackwell GPUs worldwide. Industry experts suggest the statement may have been aimed at adversaries rather than allies, given the context of global technology collaboration.
The $20 Billion Sovereign AI Reality
What makes Trump’s statement particularly puzzling is the sheer scale of Nvidia’s international business. The company’s sovereign AI strategy has become a cornerstone of its growth, with CFO Colette Kress revealing this segment is on track to generate more than $20 billion in revenue this year. This represents a massive doubling from the previous year and underscores how deeply embedded Nvidia has become in global AI infrastructure development. Recent deals in South Korea totaling 260,000 GPUs for AI data centers and the UK’s Nscale deployment of 300,000 Grace Blackwell GPUs demonstrate that Nvidia’s international expansion isn’t just happening—it’s accelerating. Blocking these sales would essentially require Nvidia to walk away from one of its fastest-growing revenue streams, which seems economically implausible given shareholder expectations and market realities.
The Geopolitical Tightrope
The semiconductor industry has always navigated complex export controls, but Trump’s comments suggest a potential escalation beyond the current China-focused restrictions. As the interview reveals, the president’s rhetoric extends beyond traditional adversaries to potentially include allied nations. This creates a significant diplomatic challenge, particularly with countries like the United Kingdom, Japan, and South Korea that have been key partners in semiconductor supply chain security initiatives. The historical precedent of technology sharing between allies, particularly during World War II as mentioned by Nor-Tech’s Dominic Daninger, suggests that complete isolation of advanced chips would undermine decades of international cooperation. More likely, we’ll see continued targeted restrictions against specific adversaries while maintaining strategic partnerships with allied nations.
Competitive Opportunities in Restriction Gaps
If the US were to implement broader restrictions, it would create immediate opportunities for Nvidia’s competitors. Companies like AMD, Intel, and emerging Chinese semiconductor firms would likely accelerate their efforts to fill the void in international markets. More importantly, it could spur increased investment in alternative AI architectures and specialized chips from countries seeking technological independence. The market has already shown that when restrictions create artificial scarcity, innovation follows—we’ve seen this pattern play out repeatedly in semiconductor history. What makes this situation unique is the global nature of AI development; unlike previous technology restrictions that targeted specific applications, AI infrastructure touches nearly every sector of the modern economy.
The Partner Ecosystem’s Resilience
The reaction from Nvidia partners reveals an industry that has grown accustomed to navigating regulatory uncertainty. As Sterling Computers CTO Christopher Cyr noted, “We’ve lived within the cycle of technological restrictions for eons.” This resilience stems from decades of experience with export controls, sanctions, and international trade disputes. Partners have developed sophisticated strategies for managing these risks, including diversifying product offerings, developing relationships with multiple vendors, and creating flexible deployment models. The fact that Nvidia’s stock price actually increased following Trump’s comments suggests that investors recognize the gap between political rhetoric and practical implementation. The market appears to be betting that business realities will ultimately prevail over maximalist policy statements.
Strategic Implications for Global AI Development
Beyond the immediate market reactions, this episode highlights the fundamental tension between national security concerns and global technological leadership. Complete isolation of advanced AI chips would not only harm Nvidia’s business—it could accelerate the fragmentation of global AI standards and development pathways. Countries excluded from accessing cutting-edge technology would have stronger incentives to develop competing ecosystems, potentially creating multiple, incompatible AI infrastructures worldwide. This fragmentation would increase costs, reduce interoperability, and ultimately slow the pace of AI innovation. The more pragmatic approach, which appears to be what industry partners expect, involves carefully calibrated restrictions that protect genuine security concerns while maintaining the collaborative networks that drive technological progress.
