Key Points
- President Trump announced White House approval for Nvidia to export H200 AI chips to approved customers in China.
- The deal includes a 25 percent U.S. cut of sales, higher than the previously demanded 15 percent cut.
- H200 chips are an upgrade over the scaled‑down H20 models but are less powerful than Nvidia’s Blackwell GPUs.
- Trump framed the policy as a boost for American jobs, manufacturing, and taxpayers.
- Senators urged continued denial of China’s access to Nvidia’s most powerful chips to protect U.S. AI leadership.
- The approval reflects a balance between economic benefits and national security concerns.
- Success depends on Chinese customers actually purchasing the H200 chips amid push for domestic manufacturing.
Background
In May, the Trump administration lifted previous limits on AI chip exports, opening the door for broader sales of Nvidia’s semiconductor products to foreign markets. Prior to this change, only the scaled‑down H20 chips were permitted for export to China. The decision to broaden access came amid ongoing debates about maintaining U.S. leadership in artificial intelligence and protecting national security interests.
Details of the Approval
President Donald Trump announced that Nvidia now has White House approval to sell its H200 AI GPU chips to “approved customers” in China and other countries. The agreement includes a condition that the United States will receive a 25 percent cut of the GPU sales, a figure higher than the 15 percent cut that was demanded in August. The H200 chips represent an upgrade over the previously permitted H20 models, offering increased performance while still falling short of Nvidia’s most advanced Blackwell GPUs.
Trump emphasized that the policy will support American jobs, strengthen U.S. manufacturing, and benefit American taxpayers. He also noted that Nvidia’s U.S. customers are already progressing with the highly advanced Blackwell chips, which are not part of the current export deal.
Political Reactions
While the administration highlighted the economic benefits of the new export permissions, a group of senators urged President Trump to continue denying China access to Nvidia’s most powerful chips. Their concern centers on preserving the United States’ leading position in AI technology. The senators’ appeal reflects a broader congressional push to maintain strict controls over the most advanced semiconductor technologies.
The approval has been described as a reward for Nvidia CEO Jensen Huang’s efforts to align the company with White House priorities. However, the success of the policy depends on Chinese customers actually seeking to purchase the H200 chips, a market segment that has been encouraged to develop domestic chip manufacturing capabilities.
Implications
The decision to allow H200 exports to approved Chinese buyers signals a nuanced approach to balancing economic interests with national security concerns. By setting a higher U.S. revenue share and limiting the most advanced Blackwell GPUs, the administration aims to generate domestic benefits while mitigating potential strategic risks.
Industry observers note that the move could influence the competitive dynamics of the global AI chip market, potentially prompting other manufacturers to reassess their export strategies. At the same time, the continued push by some lawmakers to restrict the flow of cutting‑edge technology to China underscores the ongoing tension between commercial opportunities and security considerations.
Source: theverge.com