[News] Trump’s AI Czar: China at Most Two Years Behind U.S. in Chip Design

According to Bloomberg, White House crypto and AI czar David Sacks states that China is, at most, two years behind the U.S. in semiconductor design and has become increasingly adept at circumventing U.S. export controls.

Sacks warns that the U.S. should be concerned about Huawei’s rapid progress in closing the gap with global rivals, citing DeepSeek’s recent breakthrough AI model as evidence that China continues to advance despite restrictions. As Bloomberg adds, he notes that before DeepSeek’s debut, it was widely believed China lagged by years—but the rise of DeepSeek suggests the gap may now be just months.

He also criticizes the Biden administration’s AI diffusion rule—rescinded last month by the Trump administration—arguing that while top-tier U.S. semiconductors should not go to China, current export controls already address that risk. Sacks adds that he doesn’t see the need for global oversight of every GPU sale, as cited in the report.

Sacks further emphasizes that overly restrictive U.S. limits on AI chip sales to allies could backfire by pushing other countries toward adopting Chinese technology—creating new openings for Huawei and other Chinese firms.

Last week, according to Reuters, Sacks said that China is not years behind the U.S. in AI development; instead, the gap may now be just three to six months. The White House later clarified that he was referring specifically to AI models, while Chinese AI chips still lag U.S. counterparts by one to two years. Calling it a “very close race,” Sacks urges the administration to reconsider whether overly strict AI rules risk stifling innovation and ceding leadership in this critical sector to China, Reuters adds.

Reuters further suggests that Sacks’ comments may reflect a broader Trump administration strategy aimed at expanding overseas markets for U.S. AI chips and models. Notably, following the repeal of the AI diffusion rule, the Trump administration and the United Arab Emirates announced plans last month to build the world’s largest AI campus outside the U.S.—a reversal from 2023 Biden-era rules that had limited most AI chip exports to the region.

Read more

• [News] China Just 3-6 Months Behind US in AI Models, Warns Trump’s AI Czar
• [News] H20 AI Chip Ban Reportedly Holds as China-U.S. Talks Heat Up — What’s Next for Both Sides?

(Photo credit: David Sacks’ X)