Sens. Warren and Kim blast Trump for allowing AI chips to be sent to overseas units of Chinese firms

By Alexandra Alper

WASHINGTON, June 1 (Reuters) – 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 U.S. exports, on Sunday issued guidance to close a potential loophole that may have ​led companies to export the world’s most advanced chips – like 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 fueling China’s military capabilities” said Warren, who also serves as ranking ⁠member of ‌the Senate Banking Committee.

“Secretary Howard ⁠Lutnick should testify before the ​Senate ‌Banking Committee about how his ​reckless mismanagement ⁠of the Commerce Department’s Bureau of Industry and Security is putting our national security at risk.”

The Commerce Department did not immediately respond to a request for comment.

(Reporting by ​Alexandra Alper)