Washington remains divided over the issue of artificial intelligence once again. The focal point of the disagreement revolves around the exportation of AI chips. Recently, Trump permitted Nvidia to market its H200 chips to China, a move that sparked debates. Although these chips are not as advanced as Nvidia’s latest American versions, they are still sophisticated enough for American industry use, surpassing the previously allowed China-specific H20 chips that displeased Beijing.

This decision was seen as mutually beneficial by some parties. The U.S. government would receive a 25% share of Nvidia’s sales in China, Chinese AI firms would gain access to superior chips, and Nvidia could expect an uptick in sales in one of its key markets. Nvidia’s CEO, Jensen Huang, dedicated significant effort to persuade government officials to support this agreement. While concerns were raised in D.C. about empowering Chinese AI advancements potentially compromising U.S. competitiveness and national security, Huang contended otherwise. He argued that maintaining Chinese reliance on Nvidia’s infrastructure would actually strengthen the U.S.’s position in the global AI landscape.

Although Huang may have swayed certain individuals like Trump and AI Czar David Sacks, it appears that Congress is not fully onboard and is demanding a say in the matter. Representative Brian Mast from Florida emphasized the importance of congressional oversight in chip exports similar to that for missile sales to foreign nations.

Mast introduced the AI Overwatch Act following Trump’s authorization of H200 sales, granting oversight power to relevant congressional committees over chip export licenses to countries considered adversaries like China. While the bill passed through the House Foreign Affairs Committee, its fate in Congress remains uncertain given past failures of similar legislation such as the GAIN AI Act which faced opposition from Nvidia.

The bill has caused division not only within Washington but also within the MAGA movement itself. Despite Mast’s alignment with Trump, his proposed legislation has stirred controversy among other prominent MAGA figures including David Sacks who accused it of undermining Trump’s policies and being orchestrated by anti-Trump entities.

Amidst this debate, Anthropic CEO Dario Amodei openly opposes allowing Nvidia chips into China, likening it to a dangerous decision akin to providing nuclear weapons to North Korea. Despite this criticism, Jensen Huang remained unfazed and praised Anthropic’s AI assistant Claude during an appearance at Davos.