US blocks Nvidia’s top AI chip from China amid India tech push

• The White House says Nvidia’s top AI chip will not go to China.
• Debate over smaller models as talks with Beijing remain paused.

The White House is holding firm on its position that Nvidia’s most advanced artificial intelligence chip should not be sold to China. Speaking to reporters on Tuesday, spokesperson Karoline Leavitt said the company’s Blackwell chip will remain off the table for Chinese buyers. “As for the most advanced chips, the ‘Blackwell’ chip, that’s not something we’re interested in selling to China at this time,” she said. Leavitt added that US President Donald Trump has made his position clear.

Her comments followed Trump’s remarks over the weekend. He said the most valuable US corporation would keep its highest-end chips in the hands of American businesses rather than offer them to China or other countries. The decision adds to months of questions about how the administration plans to handle chip exports.

In August, Trump suggested that China might be allowed to purchase a scaled-down version of the Blackwell chip. That raised speculation about whether loopholes would remain. Last week, during a summit in South Korea, Trump said he might discuss the topic with Chinese President Xi Jinping. He later said the issue did not come up in their talks.

While the US tightens controls, Nvidia continues to expand its presence elsewhere. On Wednesday, the chipmaker joined Indian and US investors putting money behind deep-tech startups in India. The group added new members and secured more than $850 million in capital commitments to support companies working in scientific research and advanced engineering.

New investors include Qualcomm Ventures, Activate AI, InfoEdge Ventures, Chirate Ventures, and Kalaari Capital. They will join the India Deep Tech Alliance, which launched in September with a pledge of $1 billion. The alliance aims to support companies working on space technology, semiconductors, robotics, and artificial intelligence.

As a founding member and strategic advisor, Nvidia will offer technical guidance, training programmes, and feedback on policy to help Indian startups build with its computing tools. The involvement is seen as another attempt to solve a major challenge these startups face: money. Investors often avoid early scientific ventures because they take many years to develop and it can be hard to predict when they will pay off.

The funding effort also arrives shortly after the Indian government rolled out a $12 billion plan to grow research and development. The country has a strong services sector, but it still trails in manufacturing capabilities. Officials hope deeper investment in science will help change that.

Data from Nasscom shows venture funding for deep-tech startups in India rose 78% to $1.6 billion last year. Still, that was only about one-fifth of total startup funding, and founders say advanced technologies need stronger backing. In April, one government minister urged startups to copy China’s focus on high-end innovation rather than delivery services. Entrepreneur groups pushed back, arguing that officials should support innovation rather than scold them for their business choices.

Analysts say investment in deep technology helps build core systems – like chips and artificial intelligence – that can give countries more control over their economic and national security futures. Sriram Viswanathan, founding managing partner at Celesta Capital, told Reuters that increased government focus means “there’s no better time for India to look at deep tech.”

Celesta has funded companies including space-tech firm Agnikul Cosmos and drone developer IdeaForge. It joined the alliance at launch alongside Accel, Blume Ventures, Gaja Capital, Premji Invest, and others.

Members of the alliance plan to invest their own money in deep-tech startups over the next five to ten years. They will also offer mentorship and help founders connect with industry networks. Viswanathan said there is no shared pool of capital inside the group, describing the model as voluntary and comparing it to Nasscom.

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