nvidia

In a dramatic policy shift, President Donald Trump has greenlit the export of Nvidia’s high-performance H200 AI chips to China — but only on one bold condition: 25% of all sales must go directly to the United States. The approval, announced via Trump’s Truth Social platform, came shortly after a phone call with Chinese President Xi and represents the first China-facing chip decision of Trump’s second term.

Trump’s Bold Tech Diplomacy: “Ship the Chip, Pay the Cut”
Trump confirmed that the deal would apply strictly to “approved customers” in China, and that Intel and AMD are also eligible to participate under the same rules. The move follows weeks of internal debate over whether the advanced H200 chip — essential for AI development — should be allowed into Chinese markets at all.
“We will protect national security, create American jobs, and keep America’s lead in AI,” Trump declared, emphasizing that next-gen U.S. chips like Blackwell and Rubin remain off-limits.
The 25% revenue demand replaces an earlier, failed plan that would’ve required Nvidia and AMD to submit a percentage of their Chinese earnings — a scheme that collapsed due to lack of legal infrastructure and Beijing’s rejection.
Now, Trump’s updated position is clear: "Ship the chip, pay the 25% cut — or don’t ship it at all."

Blackwell Blocked, H200 Becomes China’s Only Option
While Nvidia had hoped to get export clearance for its more powerful Blackwell series, the White House firmly rejected the idea. According to insiders, officials redirected discussions solely toward the H200.
Even then, uncertainty looms. Nvidia CEO Jensen Huang, who recently met with Trump, admitted that China may not buy the H200 at all.
“We don’t know. We have no clue,” Huang told reporters. “China doesn’t want watered-down chips.”
China has previously refused to purchase degraded versions of AI processors, including the H20 — a chip Nvidia tailored to stay within U.S. export limits, only to have it snubbed by Chinese buyers.

U.S. Congress Drops Export-Restricting GAIN AI Act
In a separate win for Nvidia, Congress quietly removed the GAIN AI Act from the annual defense bill. The legislation would have forced chipmakers to prioritize American clients over foreign buyers, essentially limiting exports to countries like China.
Nvidia had been under growing pressure from both the Senate Banking Committee and top Democrats like Elizabeth Warren, who called the H200 clearance a national security risk.
“Approving this chip will turbocharge China’s military and undercut America’s technological lead,” Warren warned.
Nonetheless, the GAIN AI Act was scrapped — giving Nvidia breathing room to pursue the China market, now worth an estimated $50 billion despite prior losses.

Why the H200 Matters
The H200 chip, which shipped last year, is designed to both train and run advanced AI models — making it a cornerstone technology in the race for global dominance in artificial intelligence.
While the U.S. still blocks China from acquiring the most advanced chips like Blackwell, the approval of H200 reopens a narrow but strategic channel — one that Musk, the White House, and Nvidia all view differently.
As Trump pushes forward with his aggressive “America First” AI strategy, it’s clear that even in chip diplomacy, every byte counts — and every sale must pay.

#usa , #china , #TRUMP , #NVIDIA , #AI

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