President Trump announced Monday that he would allow California-based Nvidia to sell its H200 advanced computer chips to “approved customers” in China, a boost for the semiconductor giant whose chips are widely used for artificial intelligence.
The United States will agree to a 25% cut in its chip sales to China, the president said in a Truth Social article.
The deal does not include Nvidia’s more advanced Blackwell system or its soon-to-be-available Rubin system, Mr. Trump said.
He said he informed Chinese President Xi Jinping of his decision and that the Chinese leader “responded positively.” The sales will be made “under conditions that maintain strong national security,” Mr. Trump added.
Details are being finalized by the Commerce Department, according to Mr. Trump, who said “the same approach” would apply to other U.S.-based chip companies, including AMD and Intel.
An Nvidia spokesperson on Monday praised the president’s decision, saying it “strikes a thoughtful balance that is great for America.”
Nvidia specializes in designing advanced computer processors used to power artificial intelligence. In recent years, the AI boom has made the company the most valuable publicly traded company in the United States, with a market capitalization of about $4.5 trillion as of Monday.
The Biden and Trump administrations limit exports of advanced chip technologies to some Chinese entities, warning that the chips could be used for military purposes or could help Beijing develop its AI industry in ways that could be contrary to U.S. interests. Members of both parties have supported limiting exports of AI chips, both for national security reasons and to give the U.S. artificial intelligence industry an advantage over China.
Nvidia has in a hurry to get better access to the Chinese market. CEO Jensen Huang says U.S. export rules have backfired by forcing China to develop its own domestic AI chip industry.
Huang has met with Mr. Trump several times to discuss export controls, including last week.
Meanwhile, Mr. Trump has sought to strike agreements with American chipmakers. In August, the Trump administration planned to grant export licenses to Nvidia and AMD in exchange for a 15% cut of revenue from sales to China by the US government. Administration also said during the summer that the U.S. government would take a 10% stake in Intel in exchange for federal subsidies to boost semiconductor manufacturing.
