US President Donald Trump has announced that he will allow Nvidia to sell its H200 artificial intelligence chip to China, despite concerns over national security. However, the sale of the more advanced Blackwell chips remains off-limits.
Under a deal that Trump says will "support American Jobs," Nvidia will be allowed to export the less powerful H200 chips to China in exchange for paying 25% of its sales revenue to the US government. This move comes after the Chinese government urged potential customers to reject the H200 chip, labeling it as not powerful enough.
Nvidia CEO Jensen Huang has been a vocal supporter of Trump's policies, and his lobbying efforts appear to have paid off. The company's CEO, along with tech czar David Sacks, has argued that selling chips to China will make the country more dependent on US technology.
The announcement comes as part of a broader quid pro quo arrangement in which Nvidia agreed to give up 15% of its revenue from chip sales to China in exchange for leniency on export controls. The deal has been met with skepticism by experts, who question the legality and practicality of such an agreement.
Trump's move has sparked concerns that he is overstepping his authority as president, particularly in regards to national security issues. Critics argue that Trump's decision undermines the US government's ability to regulate exports effectively and prioritize American interests.
The sale of H200 chips to China still needs to be formally finalized by the Commerce Department, but Trump's announcement has sent a clear signal that he is willing to bend rules to appease Nvidia and other tech companies. The deal also comes as part of a broader effort by the Biden administration to restrict Chinese tech influence, with bipartisan legislation known as the SAFE CHIPS Act aimed at limiting such exports.
Trump's decision has been widely criticized by experts and lawmakers alike, who say that it undermines US national security and prioritizes corporate interests over American jobs. As the president prepares for his visit to Beijing in April, where he will meet with Chinese President Xi Jinping, it remains to be seen whether Trump's willingness to compromise on national security issues will have long-term consequences for the US.
Under a deal that Trump says will "support American Jobs," Nvidia will be allowed to export the less powerful H200 chips to China in exchange for paying 25% of its sales revenue to the US government. This move comes after the Chinese government urged potential customers to reject the H200 chip, labeling it as not powerful enough.
Nvidia CEO Jensen Huang has been a vocal supporter of Trump's policies, and his lobbying efforts appear to have paid off. The company's CEO, along with tech czar David Sacks, has argued that selling chips to China will make the country more dependent on US technology.
The announcement comes as part of a broader quid pro quo arrangement in which Nvidia agreed to give up 15% of its revenue from chip sales to China in exchange for leniency on export controls. The deal has been met with skepticism by experts, who question the legality and practicality of such an agreement.
Trump's move has sparked concerns that he is overstepping his authority as president, particularly in regards to national security issues. Critics argue that Trump's decision undermines the US government's ability to regulate exports effectively and prioritize American interests.
The sale of H200 chips to China still needs to be formally finalized by the Commerce Department, but Trump's announcement has sent a clear signal that he is willing to bend rules to appease Nvidia and other tech companies. The deal also comes as part of a broader effort by the Biden administration to restrict Chinese tech influence, with bipartisan legislation known as the SAFE CHIPS Act aimed at limiting such exports.
Trump's decision has been widely criticized by experts and lawmakers alike, who say that it undermines US national security and prioritizes corporate interests over American jobs. As the president prepares for his visit to Beijing in April, where he will meet with Chinese President Xi Jinping, it remains to be seen whether Trump's willingness to compromise on national security issues will have long-term consequences for the US.