Trump Clears Nvidia to Sell Advanced AI Chips to China

By Staff, Agencies

US President Donald Trump has authorized Nvidia to sell its advanced H200 AI chips to select, government-approved customers in China, marking a pivotal development in the ongoing US-China chip war.

“We will protect National Security, create American Jobs, and keep America's lead in AI,” Trump stated on social media on Monday.

The decision, which also applies to other US chipmakers like AMD, comes after intense lobbying by Nvidia CEO Jensen Huang, who recently visited Washington to rally support for easing export restrictions.

The move reverses a previous ban on the sale of high-end AI chips to Chinese companies. While the lifting of the restriction grants Nvidia access to the lucrative Chinese market, it comes with strings attached. Trump stipulated that Nvidia must pay 15% of its Chinese revenues to the US government.

In his announcement, Trump added, “$25% [sic] will be paid to the United States of America,” though the figure appears to need clarification. The White House has yet to comment on the specifics of the arrangement, which could face opposition from national security advocates in Congress.

Nvidia, the world’s top chipmaker, was previously blocked from exporting advanced AI chips to China over national security and military concerns, placing it at the center of US-China tech tensions.

“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” the company said in a statement provided to BBC News.

The move followed reported pushback from Beijing, which had instructed local tech firms to reject Nvidia’s older H20 chips and prioritize domestically produced alternatives.

The Nvidia H200 chips, a generation behind the latest Blackwell model, are still among the most powerful semiconductors for commercial AI. Analysts say limited sales balance US tech competitiveness with national security concerns.

"We applaud President Trump's decision to allow America's chip industry to compete to support high-paying jobs and manufacturing in America," Nvidia said. The announcement led to a slight uptick in Nvidia's stock, reflecting investor optimism.