In fighting AI chip trade war with China, there’s one big mistake U.S. can’t afford to make

CNBC February 11, 2025
Trevor Laurence Jockims

Key Points

– Chinese generative AI app DeepSeek has set off many concerns within the U.S., from the actual size of Silicon Valley’s lead in technology, to cyber and national security risks.

– DeepSeek has also led to calls for even greater export restrictions on the most advanced AI chips like those from Nvidia, a strategy U.S. Vice President JD Vance alluded to at an AI summit in Europe on Monday, but the recent Chinese success shows that strategy isn’t fullproof.

– Some economic and technology experts worry that the U.S. is seeking a “centrally planned global computing economy” when continuing to outpace China on innovation is the only way to win.

The U.S. government’s effort to curtail AI development...

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