The US government will allow Nvidia to export its H200 artificial intelligence chips to China, collecting a fee for every chip, President Trump said Monday.
Shares of Nvidia, the world’s Most worthy company rose 1.2% in after-hours trading after Trump made the announcement on Truth Social, having closed 3.16% higher after Semafor first reported the opportunity of approval.
Trump said that he had informed President Xi Jinping of China, where Nvidia’s chips are under government scrutiny, concerning the move and he “responded positively,” in keeping with Trump’s post.
He added: “25% can be paid to the USA of America.”
Trump said the Commerce Department was finalizing details of the arrangement and the identical approach would apply to other AI chip firms equivalent to Advanced Micro Devices and Intel.
“We are going to protect National Security, create American Jobs, and keep America’s lead in AI,” Trump wrote on Truth Social. “NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and shortly, Rubin, neither of that are a part of this deal.”
Allowing the shipments could signal a friendlier approach to China, after Trump and Xi brokered a truce within the two countries’ trade and tech war in Busan, South Korea in late October.
Administration officials consider the move a compromise between sending Nvidia’s latest Blackwell chips to China, which Trump has declined to permit, and sending China no US chips in any respect, which officials imagine would bolster Huawei’s efforts to sell AI chips in China, the person acquainted with the matter said.
Nvidia and the Commerce Department didn’t immediately reply to requests for comment.
Fears of chips strengthening China’s military
China hawks in Washington are concerned that selling more advanced AI chips to China could help Beijing supercharge its military, fears that had first prompted limits on such exports by the Biden administration.
The Trump administration had been considering greenlighting the sale, sources told Reuters last month.
Earlier media reports of H200 export approvals drew sharp criticism from Senator Elizabeth Warren, a Massachusetts Democrat who supported a bipartisan effort to order powerful US AI chips for US firms.
“After his backroom meeting with Donald Trump and his company’s donation to the Trump ballroom, (Nvidia) CEO Jensen Huang got his want to sell essentially the most powerful AI chip we’ve ever sold to China,” Warren said in a press release. “This risks turbocharging China’s bid for technological and military dominance and undermining US economic and national security.”
The H200 chip, unveiled two years ago, has more high-bandwidth memory than its predecessor, the H100, allowing it to process data more quickly.
In accordance with a report released on Sunday by the non-partisan think tank the Institute for Progress, the H200 could be almost six times as powerful because the H20, essentially the most advanced AI semiconductor that may legally be exported to China, after the Trump administration reversed its short-lived ban on such sales this 12 months.
Export of the chip would allow Chinese AI labs to construct AI supercomputers that achieve performance much like top US AI supercomputers, albeit at higher costs, the report also said.
Faced with Beijing’s muscular use of export controls on rare earth minerals, that are critical for producing a raft of tech goods, Trump this 12 months threatened recent restrictions on tech exports to China, but ultimately rolled them back typically.
The US government will allow Nvidia to export its H200 artificial intelligence chips to China, collecting a fee for every chip, President Trump said Monday.
Shares of Nvidia, the world’s Most worthy company rose 1.2% in after-hours trading after Trump made the announcement on Truth Social, having closed 3.16% higher after Semafor first reported the opportunity of approval.
Trump said that he had informed President Xi Jinping of China, where Nvidia’s chips are under government scrutiny, concerning the move and he “responded positively,” in keeping with Trump’s post.
He added: “25% can be paid to the USA of America.”
Trump said the Commerce Department was finalizing details of the arrangement and the identical approach would apply to other AI chip firms equivalent to Advanced Micro Devices and Intel.
“We are going to protect National Security, create American Jobs, and keep America’s lead in AI,” Trump wrote on Truth Social. “NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and shortly, Rubin, neither of that are a part of this deal.”
Allowing the shipments could signal a friendlier approach to China, after Trump and Xi brokered a truce within the two countries’ trade and tech war in Busan, South Korea in late October.
Administration officials consider the move a compromise between sending Nvidia’s latest Blackwell chips to China, which Trump has declined to permit, and sending China no US chips in any respect, which officials imagine would bolster Huawei’s efforts to sell AI chips in China, the person acquainted with the matter said.
Nvidia and the Commerce Department didn’t immediately reply to requests for comment.
Fears of chips strengthening China’s military
China hawks in Washington are concerned that selling more advanced AI chips to China could help Beijing supercharge its military, fears that had first prompted limits on such exports by the Biden administration.
The Trump administration had been considering greenlighting the sale, sources told Reuters last month.
Earlier media reports of H200 export approvals drew sharp criticism from Senator Elizabeth Warren, a Massachusetts Democrat who supported a bipartisan effort to order powerful US AI chips for US firms.
“After his backroom meeting with Donald Trump and his company’s donation to the Trump ballroom, (Nvidia) CEO Jensen Huang got his want to sell essentially the most powerful AI chip we’ve ever sold to China,” Warren said in a press release. “This risks turbocharging China’s bid for technological and military dominance and undermining US economic and national security.”
The H200 chip, unveiled two years ago, has more high-bandwidth memory than its predecessor, the H100, allowing it to process data more quickly.
In accordance with a report released on Sunday by the non-partisan think tank the Institute for Progress, the H200 could be almost six times as powerful because the H20, essentially the most advanced AI semiconductor that may legally be exported to China, after the Trump administration reversed its short-lived ban on such sales this 12 months.
Export of the chip would allow Chinese AI labs to construct AI supercomputers that achieve performance much like top US AI supercomputers, albeit at higher costs, the report also said.
Faced with Beijing’s muscular use of export controls on rare earth minerals, that are critical for producing a raft of tech goods, Trump this 12 months threatened recent restrictions on tech exports to China, but ultimately rolled them back typically.
