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Why Trump Flip-Flopped on Nvidia Selling H20 Chips to China

WIRED

The tech industry is reeling from President Trump's surprising new deal with Nvidia. Earlier this week, Trump said he would allow the company to continue selling its H20 chips to China in exchange for a 15 percent share of the revenues. You know, it's one of those things, but it still has a market," Trump said at a press conference on Monday. "So we negotiated a little deal." The unusual and legally dubious arrangement is a striking reversal for the Trump administration, which banned all H20 sales to China earlier this year. The president reportedly changed his mind about the issue after meeting with Nvidia CEO Jensen Huang, who has argued that allowing Chinese companies to buy H20s doesn't pose a risk to US national security. On one hand, this is a simple story about a president who appears to have been influenced by a powerful executive lobbying in his company's interest. But beneath the surface, there's a much more interesting and complicated saga about how we got here. Nvidia introduced the H20 last year after the US government banned the company from selling a more powerful chip, the H800, to China. The move was part of an ambitious project orchestrated by Biden administration officials who believed the United States needed to prevent China from developing advanced artificial intelligence first. For the past few months, I've been working closely with Graham Webster, a researcher at Stanford University who sought to understand how and why the Biden team decided the US needed to curb China's access to advanced semiconductors in the first place. Today, WIRED is publishing Graham's definitive account of what really happened behind the scenes, based on interviews with more than 10 former US officials and policy experts, some of whom spoke on the condition of anonymity. "I did this piece because the official legal justification for the controls, military and human rights, was obviously never the whole story," Graham told me. "Clearly AI was in the mix, and I wanted to understand why in some depth." Graham writes that several key officials in Biden's White House and Commerce Department "believed AI was approaching an inflection point--or several--that could give a nation major military and economic advantages.


Inside the Biden Administration's Gamble to Freeze China's AI Future

WIRED

Alan Estevez was sitting at his dining room table wearing a t-shirt when Secretary of Commerce Gina Raimondo called on Zoom to ask if he wanted to be the Biden administration's top export control official. "You're going to have to sell me on this," Estevez recalls telling her. It was 2021, and the outspoken New Jersey native thought he had finally left public service behind. After more than three decades at the Pentagon, he had left and taken a job in consulting. He wasn't sure if he was ready to go back.


A DOGE AI Tool Called SweetREX Is Coming to Slash US Government Regulation

WIRED

Efforts to gut regulation across the US government using AI are well underway. On Wednesday, the Office of the Chief Information Officer at the Office of Management and Budget hosted a video call to discuss an AI tool being used to cut federal regulations, which the office called SweetREX Deregulation AI. The tool, which is still being developed, is built to identify sections of regulations that aren't required by statute, then expedite the process for adopting updated regulations. The development and rollout of what is being formally called the SweetREX Deregulation AI Plan Builder, or SweetREX DAIP, is meant to help achieve the goals laid out in President Donald Trump's "Unleashing Prosperity Through Deregulation" executive order, which aims to "promote prudent financial management and alleviate unnecessary regulatory burdens." Industrial-scale deregulation is a core aim laid out in Project 2025, the document that has served as a playbook for the second Trump administration.


Ukrainian drone hits apartment building in southern Russia

Al Jazeera

New video shows the moment a Ukrainian drone struck an apartment building in Rostov-on-Don, Russia. Officials say at least 13 people were injured in the attack.



xAI Was About to Land a Major Government Contract. Then Grok Praised Hitler

WIRED

In recent weeks, three of the leading American artificial intelligence firms have announced partnerships with the US government, promising the use of their services to federal workers for a paltry sum. Elon Musk's xAI was supposed to be part of the initiative, but a planned partnership fell apart after the Grok chatbot spouted antisemitic conspiracy theories on X in early July, WIRED has learned. The chaos surrounding the Grok deal reflects the Trump administration's current focus on speed and its disregard, at times, of preexisting norms surrounding government tech procurement. On May 15, fresh off a whirlwind trip to the Middle East with President Donald Trump, OpenAI CEO Sam Altman sent an email to the leadership team at the General Services Administration (GSA), the federal agency that manages government technology. He was inspired by Trump's desire to "go big," he said.