Jensen Huang Emerges as Trump AI Policy Ally as Nvidia Opposes Industry-Wide R&D Slowdown, Report Says

TradingKey - According to CNBC, Nvidia (NVDA) CEO Jensen Huang is emerging as a key supporter of Trump's opposition to a blanket slowdown in the AI industry.

Trump advocates for continuing to advance the U.S. AI industry and addressing unlawful acts through the existing criminal and civil justice systems. Meanwhile, Huang believes that companies can accelerate research and development while ensuring product safety through engineering testing and release protocols.

[Source: CNBC]

According to CNBC statistics, the two have made at least six joint public appearances since the start of Trump's second term. U.S. Treasury Secretary Scott Bessent stated during a congressional hearing that Trump is "in complete alignment" with Huang on AI issues, indicating that the Trump administration publicly endorses some of Huang's views regarding AI development speed and safety measures.

CNBC cited people familiar with the matter as saying that Huang has been invited to and is expected to attend a state dinner hosted by Trump for Chinese President Xi Jinping. U.S.-China AI competition and advanced chip export policies could become key areas of market focus.

Trump Announces Plan to Form 'AI Force'

On September 19, Trump stated on Truth Social that the U.S. government will not hinder or suppress the development of the AI industry, but will instead support industry growth and exercise oversight. He announced plans to form an "AI Force" and said a new "AI czar" would soon be officially appointed.

Trump referred to AI as "the next industrial revolution or the internet," stating that its impact on the U.S. economy could reach 25% of GDP, though he did not disclose the basis for this estimate. He also emphasized that the U.S. needs to maintain its lead in AI competition with China and stated that existing criminal and civil judicial systems will be used to handle violations in the AI field.

David Sacks previously served as the White House head of AI and cryptocurrency affairs, completing his term as a special government employee in March 2026 before transitioning to co-chair of the President's Council of Advisors on Science and Technology to continue participating in tech policy. As of September 20, the candidate for the new head of AI affairs, as well as the authority, organizational structure, and establishment date of the AI Force, have not been announced.

Jensen Huang Advocates Accelerating R&D, Safe Releases

On September 14, Jensen Huang received a call from Donald Trump while on stage at the All-In Summit in Los Angeles. Trump said that actions impeding the development of AI and data centers could benefit political opponents or China.

Huang replied, "You're right, we won't let that happen." Trump also stated that while AI development requires caution, it should not stop the entire industry.

The next day at Salesforce's Dreamforce conference, Huang stated that the pace of innovation does not conflict with product safety. Companies can accelerate R&D, but should not release a product if its functionality, capabilities, and safety cannot be verified; if a company feels things are getting out of control or that safety issues might exist, it should pause and complete inspections.

Huang opposes requiring the entire industry to uniformly slow down AI R&D, nor does he support enacting specialized laws and regulations for AI. He views AI safety as an engineering problem and advocates managing risks through product design, testing, corporate responsibility, market constraints, and existing laws.

H200 Export Policy Reflects Adoption of Some of Jensen Huang’s Proposals

Jensen Huang's interactions with the Trump administration also involved chip exports to China. Nvidia believes that a comprehensive restriction on US AI chips entering the Chinese market could push Chinese companies to accelerate domestic substitution and weaken the global influence of US technology platforms.

On December 8, 2025, Trump announced that Nvidia would be allowed to export H200 chips to Chinese commercial customers reviewed by the US Department of Commerce. In January 2026, the Bureau of Industry and Security under the US Department of Commerce changed export licensing for the H200, AMD MI325X, and similar products to case-by-case reviews, requiring Chinese customers to establish export compliance systems and requiring chips to undergo independent third-party performance and security testing in the United States.

The US subsequently imposed a 25% tariff under Section 232 of the Trade Expansion Act on certain advanced computing chips entering the US for testing. The licensing scope covers previous-generation products such as the H200, but excludes Nvidia's more advanced Blackwell and Rubin platforms.

The relevant policies faced opposition from some bipartisan US lawmakers, with critics concerned that the H200 could enhance China's AI, cyber, and military capabilities. Chinese regulators have also restricted or delayed imports of relevant chips, leaving uncertainty over whether the export quotas approved by the US can fully translate into actual sales.

The White House's support for accelerating AI R&D and data center construction helps maintain US domestic investment in computing power; meanwhile, export licensing to China, security reviews, and Chinese procurement policies continue to affect Nvidia's market access and revenue upside.