Nvidia allowed to sell its H200 chips to China, the gov takes a 25% cut
2 days ago
- #trade policy
- #US-China relations
- #AI technology
- Donald Trump has allowed Nvidia to sell its H200 AI chips to China, following months of lobbying by CEO Jensen Huang.
- The US previously banned advanced Nvidia chips to China over national security concerns, but Trump announced a policy shift on Truth Social.
- The deal includes the US receiving 25% of proceeds, more than the 15% in earlier agreements, raising legal concerns among some lawmakers.
- Democratic senators Elizabeth Warren and Andy Kim expressed concerns that selling these chips could aid China's surveillance, censorship, and military applications.
- Nvidia's CEO Jensen Huang has close ties with Trump, attending White House events and pledging $500bn investment in US AI infrastructure.
- China had imposed its own restrictions on Nvidia chips, but lifting US bans could now bring billions in revenue for Nvidia.
- Trump criticized Biden's strict chip export policies, claiming his administration will prioritize America's interests.
- China's foreign ministry acknowledged the reports but has yet to finalize its decision, with potential limits on H200 chip access to protect domestic tech growth.