:max_bytes(150000):strip_icc()/GettyImages-2212801610-d9ec10856a9a426288936657980ed6bf.jpg "Nvidia Wins Trump’s Approval to Sell H200 AI Chips to China, But There’s a Catch")
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Key Takeaways
- President Trump said Nvidia will be allowed to sell its H200 AI chips in China, with a 25% cut of sales going to the U.S. government.
- The move comes just months after a less advanced chip was approved in a 15% revenue-sharing deal.
Nvidia could be set to sell more of its advanced chips to China, with some conditions.
President Trump posted on Truth Social Monday that Nvidia (NVDA) will be allowed to sell its H200 AI chips to “approved customers” in China, in exchange for a 25% cut of revenues going to the U.S. government.
“The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies,” Trump said in his post.
The H200, which is a generation behind Nvidia’s Blackwell line, had been banned for sale to China previously on national security concerns, and its approval comes just months after Nvidia’s less advanced H20 was greenlighted by President Trump in exchange for a 15% revenue-sharing deal.
Why This Is Significant
Nvidia’s most advanced chips remain prohibited from being sold to China amid worries allowing them could hurt America’s position in the AI race. However, CEO Jensen Huang has repeatedly advocated for greater access, suggesting the restrictions may hurt America’s competitiveness by driving Chinese firms to develop stronger products.
The move is expected open the door for more approvals for Nvidia and other chipmakers like rival Advanced Micro Devices (AMD), though Chinese limitations on purchases based on security concerns could still hold back sales.
William Blair analysts told clients Monday it “remains unclear” if any sales will be made, given China’s government may discourage firms from buying H200 chips, as it has with the H20.
Nvidia shares were little changed in recent trading. They’ve gained close to 40% since the start of the year.
