This week brought two major developments at the intersection of technology and geopolitics. On one side, Nvidia unveiled its Cosmos initiative—a new infrastructure designed to accelerate “physical AI.” On the other, U.S. President Donald Trump signaled openness to allowing the company to sell a limited version of its next-generation AI chips to China—under strict conditions.
Cosmos: Expanding AI into the Physical World
According to TechCrunch, Nvidia introduced a suite of “world models,” including the seven-billion-parameter Cosmos Reason, capable of helping robots interpret their surroundings, plan ahead, and execute physical tasks. The release also features Cosmos Transfer-2, which can generate synthetic 3D training data more efficiently, and lighter, speed-optimized variants for real-time applications.
Paired with hardware like the RTX Pro Blackwell Server and DGX Cloud, the Cosmos platform forms a complete ecosystem aimed at moving AI from the simulation stage to real-world deployment, especially in robotics and industrial automation.
The China Chip Sales Twist
Almost simultaneously, President Trump announced he could authorize Nvidia and AMD to sell “down-clocked” versions of their most advanced AI chips to Chinese clients. The catch: 15% of all revenue from these sales would go directly to the U.S. Treasury.
While the administration frames it as a balanced approach to economic gain and national security, critics warn it could weaken export control frameworks. In China, authorities have advised major tech companies—including Tencent, ByteDance, and Baidu—to exercise caution or avoid these chips in sensitive applications.
Nvidia’s Cosmos marks a leap forward in bringing AI into the physical domain, offering the tools to teach machines how to navigate and interact with the real world. At the same time, the Trump administration’s conditional chip-sale policy underscores how deeply intertwined AI innovation has become with geopolitical strategy.
Together, these moves could reshape both the technological capabilities and the strategic balance of power in the global AI race.