Senators Elizabeth Warren and Andy Kim have criticized the Trump administration for allowing artificial intelligence chips to be exported to overseas units of Chinese companies, raising national security concerns about technology transfers.

The criticism comes amid a broader debate over U.S. technology exports to China, particularly regarding semiconductors and AI-related equipment that could have military applications. Bloomberg reported that Chinese laboratories with military ties are seeking Nvidia's AI chips, highlighting ongoing concerns about dual-use technology transfers.

Meanwhile, several technology companies reported strong financial performance driven by AI demand. Hewlett Packard Enterprise lifted its forecast beyond 2028 goals due to robust AI demand, causing shares to surge 36%. The company's optimistic outlook reflects broader industry confidence in sustained AI growth.

Other companies also capitalized on AI momentum. DriveNets secured $410 million in its latest funding round with AMD joining as an investor, while Credo signaled expectations of over 80% revenue growth through fiscal 2027, with more than $600 million expected from its optical portfolio.

The developments underscore the tension between national security considerations and commercial interests in the rapidly expanding AI sector. While U.S. companies benefit from strong demand for AI infrastructure, policymakers continue to grapple with preventing sensitive technology from reaching potential adversaries.

CNBC reported that China is learning to build AI capabilities without relying on Nvidia chips, suggesting that export restrictions may be driving technological independence rather than limiting Chinese AI development.