President Donald Trump announced on Monday that the United States will permit exports of Nvidia’s H200 processors, its second-best artificial intelligence chips, to China, while imposing a 25% fee on such sales. This decision reportedly resolves an ongoing debate about whether Nvidia and its competitors should maintain market leadership by engaging with China or restrict exports. However, the impact on sales remains uncertain, as the Chinese government has urged domestic companies to minimize their reliance on U.S. technology.
Despite Trump’s announcement, a Financial Times report indicates that Beijing is prepared to limit access to Nvidia’s advanced H200 chips. In a statement on Truth Social, Trump noted that he had communicated this decision to Chinese President Xi Jinping, who responded positively. Trump added that the U.S. Commerce Department is finalizing details, and the arrangement will extend to other AI firms, including Advanced Micro Devices (AMD) and Intel.
According to Trump’s post, the U.S. government will receive a fee of “$25%,” later confirmed by White House officials to mean 25%, which is a rise from the 15% proposed in August. Trump emphasized that this approach aims to protect national security, create American jobs, and maintain the U.S.’s leadership in AI. He asserted that Nvidia’s U.S. customers are advancing with their cutting-edge Blackwell chips, which remain outside the scope of this agreement.
This shift in policy marks a departure from Trump’s earlier position, which restricted the most advanced Nvidia chips from being sold to China and other nations. Previously, the U.S. had imposed strict export controls on advanced AI chip sales to China, citing concerns over national security. Under those rules, only certain older models were permitted for export, subject to requirements that included sharing a portion of the revenue, approximately 15%, with the U.S. government.
While Trump did not specify how many H200 chips would be allowed for shipment or any potential conditions, he mentioned that exports would proceed “under conditions that allow for continued strong National Security.” This decision is perceived as a compromise between completely barring Nvidia’s advanced Blackwell chips from China and allowing unrestricted sales, which could bolster Chinese firms like Huawei in the competitive AI landscape.
Nvidia expressed a favorable view on the decision, stating, “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”
The evolving dynamics of AI technology and international relations highlight the complexities facing American companies operating in a highly competitive global market. As the U.S. seeks to balance national security interests with economic opportunities, the future of AI exports remains a focal point for both policymakers and technology firms.
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