Trump OKs Advanced Nvidia Chip Sales to China

President Donald Trump said Monday that his administration will permit Nvidia to resume sales of its H200 AI chips to selected buyers in China, as long as those customers receive approval from U.S. officials. Trump posted the announcement on social media, saying the policy aims to safeguard national security, support domestic employment, and preserve what he described as the country’s edge in advanced computing. 

The decision covers other American chipmakers, including AMD, and follows a lobbying push by Nvidia CEO Jensen Huang, who traveled to Washington last week to press the case. 

Nvidia, now the most valuable company in the world and a dominant force in advanced processors, has been caught between the strategic priorities of Beijing and Washington. The company had been barred from sending its top-tier chips to China, a key market. 

Although Trump rolled back the ban in July, he attached a requirement that Nvidia pay a portion of its China revenue to the U.S. Treasury. Reports later circulated that Chinese authorities urged domestic firms to halt purchases of Nvidia chips built for customers in China. 

Nvidia praised the president’s latest decision and said it would help protect high-skilled employment and manufacturing capacity in the U.S. The company’s stock price edged up after the announcement. 

The H200 chip is one generation behind the firm’s Blackwell processors, which are widely described by analysts as the most powerful AI chips currently available. 

Huang argued in September that the U.S. should allow broad access to AI hardware, including for users in China. He has often warned that China’s semiconductor industry is progressing quickly and could soon match the capabilities of American rivals. 

Trump added in his post that 25% of the revenue from the China-linked sales would go to the U.S., though the White House has not yet clarified how that payment would be structured. 

Analysts say the partial reopening may give Washington extra leverage in broader negotiations with Beijing, especially regarding rare earth minerals. China dominates the processing of these materials, which are crucial for a wide range of electronics. 

Still, even with resumed access to the H200, experts expect Chinese firms to continue pushing for alternatives that reduce reliance on American suppliers. Beijing had earlier urged local companies to sidestep Nvidia’s H200 AI chips and purchase domestic products instead. 

Security researchers, meanwhile, warn that any relaxation carries risks. Specialists at Georgetown University’s Center for Security & Emerging Technology note that China’s military already uses advanced processors designed by American companies to develop AI-driven systems. They add that easier access to advanced processors could help China accelerate AI-driven tools for battlefield planning and operations. 

Other players like D-Wave Quantum Inc. (NYSE: QBTS) in the American tech industry will be watching how the tech rivalry between Beijing and Washington affects global markets since these tensions could impact more companies beyond Nvidia. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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