Trump says he’s letting Nvidia sell advanced chips to China
President Trump made a significant announcement on Monday, revealing that California-based Nvidia will now be permitted to sell its cutting-edge H200 computer chips to “approved customers” in China. This decision serves as a major boost for Nvidia, a leading semiconductor company known for its chips that are widely utilized in artificial intelligence applications.
As part of the agreement, the United States will receive a 25% share of chip sales to China, as outlined in a post on President Trump’s Truth Social account. However, it’s important to note that this arrangement excludes Nvidia’s more advanced Blackwell system and the upcoming Rubin system.
President Trump also mentioned that he had informed Chinese President Xi Jinping about this development, and received a positive response. The sales will be conducted under conditions that prioritize national security, ensuring that the interests of the United States are safeguarded.
The Department of Commerce is currently finalizing the details of this arrangement, with President Trump indicating that a similar approach will be adopted for other U.S.-based chip companies like AMD and Intel.
A spokesperson for Nvidia expressed gratitude for the president’s decision, describing it as a balanced move that benefits America. Nvidia specializes in designing advanced computer processors that play a crucial role in powering artificial intelligence technologies. This focus on AI has propelled Nvidia to become the most valuable publicly traded company in the U.S., with a market capitalization of approximately $4.5 trillion.
Both the Biden and Trump administrations had previously imposed restrictions on exports of advanced chip technology to certain Chinese entities, citing concerns about potential military applications and the competitive implications for the U.S. AI industry. Members from across the political spectrum have supported these limitations on AI chip exports to maintain national security and ensure a competitive edge over China.
Nvidia has actively advocated for increased access to the Chinese market, with CEO Jensen Huang emphasizing the unintended consequences of export restrictions that have incentivized China to develop its own AI chip industry.
Huang has engaged in discussions with President Trump on multiple occasions regarding export controls, including a recent meeting last week. On the other hand, President Trump has been focused on striking deals with U.S. chipmakers, such as granting export licenses to Nvidia and AMD in exchange for a share of revenue from sales to China.
In August, the Trump administration had proposed granting export licenses to Nvidia and AMD, alongside a plan for the U.S. government to acquire a stake in Intel in exchange for federal grants to support semiconductor manufacturing.
