Trump Eases Restrictions on Nvidia AI Chips to China
Full Transcript
Donald Trump has cleared the way for Nvidia to begin selling its powerful AI computer chips to China, marking a win for the chip maker and its CEO, Jensen Huang, who has lobbied the White House for months regarding sales in the country.
Trump announced on Truth Social that he informed President Xi of China about allowing Nvidia to ship its H200 products to approved customers in China and other countries under conditions that ensure continued strong national security.
The Department of Commerce is finalizing the details, and Trump plans to extend similar offers to other chip companies, including Advanced Micro Devices and Intel. The Nvidia H200 chips are the company's second most powerful, and far more advanced than the H20, which was originally designed for the Chinese market but was banned by the U.S. in April.
Trump stated that the U.S. would receive 25% of the proceeds from the sales, an increase from a previously agreed 15%. Some lawmakers, including Senators Elizabeth Warren and Andy Kim, have raised concerns about the legality of such arrangements and the potential risk to U.S. national security, urging the Commerce Secretary to reconsider selling these chips to China.
Huang has a close relationship with Trump and has made several trips to the White House, committing to invest $500 billion in AI infrastructure in the U.S. over the next four years. China, having previously imposed its own controls on Nvidia chips, could now see Nvidia's sales as a significant financial windfall amidst its own chip development strategy.
An Nvidia spokesperson applauded Trump's decision, emphasizing that it strikes a balance beneficial to America. Trump's announcement follows his criticism of the Biden administration's strict export controls on powerful chips, declaring that such policies are now over.
China's foreign ministry responded positively to the news, stressing the potential for mutual benefits through cooperation. Telecom analyst Ma Jihua noted that U.S. restrictions had allowed China's domestic chip industry to grow and catch up.