Keeping Chinese AI firms dependent on CUDA is good for NVDA, but not for USA. If these were toys for video games then this would be true. But these are strategic assets powering the most consequential technology development of all time. The second these machines started to have national security implications, the strategy changed. The CCP has a long history of aggressively blocking Western entrants to their market. This is maybe a bit heavy handed for taxis and search engines, but it is totally justified and highly advisable for defense tech. It would be foolish for the CCP to not develop their own domestic production for defense technology. Similarly the US would be foolish to not restrict their access to such technologies. Criticizing either side for acting in their obvious interests is a bit unfair, so hence we have the current stand off.