President Donald Trump on Monday announced he’s removing export controls on Nvidia’s H200 chips to China, a key reversal in what’s become part of a broader trade war between the world’s two biggest economies.
H200s – the second most-powerful AI chip in Nvidia’s inventory – are vital for completing tasks performed by AI.
NVIDIA’s highly sought-after Blackwell chips and next-generation Rubin chips are not part of the deal, Trump wrote.
“I have informed President Xi of China that the United States will allow NVIDIA to ship its H200 products to approved customers in China and other Countries, under conditions that allow for continued strong National Security.
President Xi responded positively!” Trump wrote in the post.
NVIDIA, the world’s most valuable company and the leading chipmaker, has seen massive success as demand for AI has boomed in recent years.
But that success has also dropped it square in the middle of global tensions over who will win a global race to dominate artificial intelligence.
In his post, Trump added: “25% will be paid to the United States of America,” possibly implying 25% of the revenue Nvidia earns from the sales will go to the American government.
The news comes after Trump met with Nvidia CEO Jensen Huang last week. Trump has repeatedly said that the United States must win the global AI race, even as China has invested heavily in its own domestic industry.
“We applaud President Trump’s decision to allow America’s chip industry to compete to support high-paying jobs and manufacturing in America.
Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” an Nvidia spokesperson said in a statement to CNN.
Trump also said the Department of Commerce is finalizing a similar approach for AMD, Intel, and other American chip companies.
“AMD commends President Trump’s leadership in finding a thoughtful approach to export policies that allows for US companies to compete globally,” an AMD spokesperson told CNN.
“The President’s decision strengthens American competitiveness, supports high-value domestic jobs, and drives American investment and growth in the semiconductor industry.”
The decision comes after Trump struck arrangements with chipmakers earlier this year, including an agreement with Nvidia and AMD to pay the US government 15% of revenues from chip sales to China.
Trump also announced in August that the government would take a 10% stake in Intel.
