US President Donald Trump explained his decision to allow Nvidia to sell its H20 graphics processing unit (GPU) to China on Monday by describing it as obsolete.
More specifically, Mr Trump was asked about making a deal with Nvidia for the US government to receive a 15 per cent cut of sales to Beijing.
“I deal with Jensen [Huang], who is a great guy,” Mr Trump said, referring to Nvidia's chief executive and founder.
“The chip that we're talking about, the H20, it's an old chip and China already has it … but it's obsolete and it still has a market.”
That begs the question, however, why there is so much demand from China for the H20, and why some elected officials and analysts are so concerned that Mr Trump will allow the chip to be sold to the country.
By most standards, Mr Trump's description of the H20 as obsolete is incorrect – to describe a technology, particularly a piece of hardware like the H20 GPU, as obsolete is to imply that it's no longer supported by the tech world, making it completely impractical to use within an existing technology ecosystem.
That's not the case with the H20, which was designed several years ago by Nvidia to comply with US regulations seeking to prevent powerful AI technologies from being used by countries it views as adversaries.
In recent weeks, a group of Democratic senators sent a letter to White House officials criticising the move to allow the resumption of H20 sales to China, claiming that because of the GPU's improved power-efficiency and high-bandwidth memory chips, “many PRC [People's Republic of China] firms reportedly prefer the H20 to other controlled chips”.
That's hardly an indication a GPU design is obsolete.
Late in July, in response to The National's inquires about concerns about the H20 being sold in China, Nvidia did not exactly describe the GPU as obsolete either.
“The H20 helps America win the support of developers worldwide, promoting America's economic and national security,” the statement read, emphasising the chip's deliberately modest attributes.
“It does not enhance anyone’s military capabilities, and the US government has full visibility and authority over every H20 transactions.”
Some Republicans have also described Nvidia's H20 as still relevant.
Representative John Moolenaar, who chairs the House Select Committee on the Chinese Communist Party, recently opposed resuming exports of the H20 to China.
“The H20 is a stark improvement over what the Chinese can indigenously produce at scale,” he said during a speech at Purdue University's Krach Institute for Tech Diplomacy.
“When, not if, these chips are diverted to [China's] People's Liberation Army supercomputer, they will substantially upgrade their ability to run advanced AI models.”
H20 paranoia abounds
Regardless of whether or not one considers the H20 to be obsolete, there is a tremendous amount of speculation surrounding the chip, with some of the paranoia coming from China, where there is demand for it.
This month, Nvidia sought to debunk reports that claimed some of its chips had a backdoor kill switch, to blunt any misuse that might compromise national security.
Some members of the US Congress have even sought to make it mandatory for certain chips to contain kill switches.
“Nvidia GPUs do not and should not have kill switches and backdoors,” a blog post from the company read.
“No kill switches, and no spyware … that’s not how trustworthy systems are built – and never will be.”
Despite those assurances, however, recent reports have indicated China still has concerns.
According to Bloomberg, Chinese officials are telling various companies within the country to not use Nvidia's H20 over fears that the chips might be compromised and vulnerable to being exploited.
The Chinese embassy in Washington has not yet responded to The National's requests for comment.
Trump praises Nvidia's Blackwell architecture
Despite ample conjecture about the H20 coupled with the varying opinions about Nvidia's sales of it to China, during Mr Trump's news conference on Monday, he made clear that the company's other GPU offerings would likely not be exported to China anytime soon, at least not without a few changes.
Mr Trump said Nvidia's highly touted Blackwell GPUs would need to be toned down before he would consider allowing them to be sold in China.
“It's super-duper advanced and I wouldn't make a deal with that,” he said, before quickly giving himself some wiggle room.
“Although it's possible that I would make a deal if they enhanced it in a negative way.”
Mr Trump said based on his conversations with Mr Huang, he's impressed with the Blackwell platform, adding that in terms of processing power, none of Nvidia's competitors have it, “and they probably won't for five years”.
As for the 15 per cent cut that the Trump White House wants for the H20 sales to China, on Tuesday, press secretary Karoline Leavitt said similar approaches might be applied to other companies and products, although she said specifics were still being worked out by the Department of Commerce.
Some have questioned the constitutionality of the move, referring to it as a "reverse tariff".
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
WandaVision
Starring: Elizabeth Olsen, Paul Bettany
Directed by: Matt Shakman
Rating: Four stars
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Killing of Qassem Suleimani
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE v IRELAND
All matches start at 10am, and will be played in Abu Dhabi
1st ODI, Friday, January 8
2nd ODI, Sunday, January 10
3rd ODI, Tuesday, January 12
4th ODI, Thursday, January 14
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%208
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About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
Sour%20Grapes
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Thanksgiving meals to try
World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.
Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as well as festive food platters, canapes and both apple and pumpkin pies.
Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.
The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.
Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
KILLING OF QASSEM SULEIMANI
BeIN Sports currently has the rights to show
- Champions League
- English Premier League
- Spanish Primera Liga
- Italian, French and Scottish leagues
- Wimbledon and other tennis majors
- Formula One
- Rugby Union - Six Nations and European Cups
New Zealand 21 British & Irish Lions 24
New Zealand
Penalties: Barrett (7)
British & Irish Lions
Tries: Faletau, Murray
Penalties: Farrell (4)
Conversions: Farrell
MATCH INFO
Confederations Cup Group B
Germany v Chile
Kick-off: Thursday, 10pm (UAE)
Where: Kazan Arena, Kazan
Watch live: Abu Dhabi Sports HD
