Trump Approves Nvidias H200 AI Chip Sales to China with Conditions
U.S. President Donald Trump has announced a policy allowing sales of Nvidias H200 artificial intelligence (AI) chips to designated Chinese approved customers, with the stipulation that 25% of the revenue will go to the U.S. government.
In a post on Truth Social on the 8th (local time), President Trump claimed that Chinese President Xi Jinping responded positively to this proposal, asserting that the move would strengthen American jobs and manufacturing while benefiting taxpayers.
He noted that the Department of Commerce is finalizing details, and this policy will also apply to major U.S. chip companies like AMD and Intel. Previously, Nvidia and AMD had agreed in August to share 15% of the revenue from AI chip sales to China with the U.S. government. However, around the same time, the Chinese government had warned companies about using Nvidias H20 chips designed for local use, escalating tensions between the two nations.
The H200 is reported to have higher performance than the H20, which Nvidia developed to circumvent Chinese sales regulations. Following the announcement, Nvidias stock initially rose but later gave back some gains, closing approximately 2% higher in after-hours trading.
Nvidia stated to CNBC that this decision is a compromise that allows the U.S. chip industry to maintain its global competitiveness, emphasizing that supplying the H200 to commercially approved customers is highly beneficial for the United States.
Semiconductors are at the heart of the U.S.-China AI supremacy competition. Tensions have continued between the two nations, especially after China controlled the export of rare earth elements crucial for high-end chip production, prompting the Trump administration to warn of significant tariff increases on Chinese products. As of late October, the situation remains fraught.
In a post on Truth Social on the 8th (local time), President Trump claimed that Chinese President Xi Jinping responded positively to this proposal, asserting that the move would strengthen American jobs and manufacturing while benefiting taxpayers.
He noted that the Department of Commerce is finalizing details, and this policy will also apply to major U.S. chip companies like AMD and Intel. Previously, Nvidia and AMD had agreed in August to share 15% of the revenue from AI chip sales to China with the U.S. government. However, around the same time, the Chinese government had warned companies about using Nvidias H20 chips designed for local use, escalating tensions between the two nations.
The H200 is reported to have higher performance than the H20, which Nvidia developed to circumvent Chinese sales regulations. Following the announcement, Nvidias stock initially rose but later gave back some gains, closing approximately 2% higher in after-hours trading.
Nvidia stated to CNBC that this decision is a compromise that allows the U.S. chip industry to maintain its global competitiveness, emphasizing that supplying the H200 to commercially approved customers is highly beneficial for the United States.
Semiconductors are at the heart of the U.S.-China AI supremacy competition. Tensions have continued between the two nations, especially after China controlled the export of rare earth elements crucial for high-end chip production, prompting the Trump administration to warn of significant tariff increases on Chinese products. As of late October, the situation remains fraught.
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