Trump Approves Nvidia's AI Chip Sales to China Amid Controversy

President Trump announced he is allowing Nvidia to sell its advanced H200 computer chips to approved customers in China, as revealed in a post on Truth Social. This decision comes amid ongoing national security concerns and trade tensions between the U.S. and China.

Trump stated that the U.S. government would receive a 25% cut from the sales, an increase from a previously discussed 15%. He informed Chinese President Xi Jinping of his decision, who reportedly responded positively.

Nvidia's CEO Jensen Huang praised the move, indicating it strikes a balance beneficial for America. The Department of Commerce is finalizing the details, and Trump mentioned that similar arrangements would apply to other companies like AMD and Intel.

Concerns have been raised by lawmakers, including Democrats Elizabeth Warren and Andy Kim, regarding the implications of selling these chips, which could potentially enhance China's military and surveillance capabilities.

Earlier restrictions had been imposed by both the Biden and Trump administrations over fears that advanced chips could be utilized for military purposes. Huang has been an advocate for increased market access, arguing that previous bans have allowed China to develop its domestic chip industry.

The potential sales could yield significant revenue for Nvidia, already valued at $4.5 trillion.