WASHINGTON – On Monday, President Donald Trump announced his decision to permit Nvidia to sell a sophisticated computer chip, crucial for artificial intelligence development, to “approved customers” in China.
The move comes amid concerns that selling advanced chips to China may bolster its competitive edge against the U.S. in AI technology. However, there is also a strong interest in fostering the AI ecosystem through American companies like Nvidia.
The chip in question, the H200, is not Nvidia’s top-tier product. The company’s most advanced chips, Blackwell and the forthcoming Rubin, are excluded from this authorization.
In a social media statement, Trump mentioned that he had communicated this decision to Chinese President Xi Jinping, who responded positively, according to Trump.
“This policy will support American jobs, strengthen U.S. manufacturing, and benefit American taxpayers,” Trump stated in his post.
He also noted that the Commerce Department is in the process of “finalizing the details” for other chip manufacturers, including AMD and Intel, to expand their sales internationally.
The approval of the licenses to sell Nvidia H200 chips reflects the increasing power and close relationship that the company’s founder and CEO, Jensen Huang, enjoys with the president. But there have been concerns that China will find ways to use the chips to develop its own AI products in ways that could pose national security risks for the U.S., a primary concern of the Biden administration that sought to limit exports.
Nvidia has a market cap of $4.5 trillion and Trump’s announcement appeared to drive the stock slightly higher in after hours trading.
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