Senators blast Trump for allowing AI chips to be sent to overseas units of Chinese firms

Democratic Senators Elizabeth Warren and Andy Kim on Monday slammed the Trump administration for potentially allowing advanced American AI chips to ‌be sent to overseas units of Chinese firms, and called on Commerce Secretary Howard Lutnick to testify to Congress on the issue, according to a statement.In a surprise move, the Department of ⁠Commerce, which oversees US exports, on Sunday issued guidance to ‌close a potential loophole that may have led companies to export the world’s most advanced ‌chips - such as Nvidia’s most sophisticated Blackwell processors - to ⁠subsidiaries of ⁠Chinese companies located outside China.“On Sunday afternoon, the Trump administration revealed ‌that its failure to update export control regulations over the last year and ‌a half ‌may have inadvertently allowed America’s most advanced AI ‌chips to flow to companies headquartered in China, potentially ⁠fuelling China’s military capabilities,” said Warren of Massachusetts, who also serves as ⁠ranking member of the Senate Banking Committee.