Nvidia’s China Comeback: H200 AI Chips Get U.S. Export Nod with 25% Uncle Sam Cut
President Donald Trump authorized Nvidia to export its H200 artificial intelligence chip to China.
Quick overview
- President Trump authorized Nvidia to export its H200 AI chip to China with a 25% surcharge fee, potentially recovering billions in lost revenue.
- The decision followed discussions with advisors and was communicated to Chinese President Xi Jinping, who responded positively.
- Only approved customers will receive the shipments, and companies like Intel and AMD are also eligible for exports.
- Democratic senators criticized the move as a significant economic and national security failure, arguing it aids China's AI development.
President Donald Trump authorized Nvidia to export its H200 artificial intelligence chip to China with a 25% surcharge fee. This decision could help the highly valued company recover billions of dollars in lost revenue from an essential international market.
Trump announced this decision in a post on his Truth Social network after weeks of discussions with advisors about whether to allow H200 exports to China. He mentioned that he informed Chinese President Xi Jinping about the action, and Xi responded positively.
Trump specified that only “approved customers” would receive these shipments, and noted that companies Intel Corp. and Advanced Micro Devices Inc. would also be eligible.
Nvidia’s efforts to convince Trump and Congress to ease export restrictions that have hindered its ability to sell AI chips to the world’s largest semiconductor market have finally paid off. Since November, the relationship between Nvidia CEO Jensen Huang and Trump has strengthened.
Democratic senators, including Elizabeth Warren, quickly criticized Trump’s decision, calling it a “colossal economic and national security failure” that provided China with resources to develop next-generation artificial intelligence.
The H200 is at least a generation ahead of what Chinese companies, such as Cambricon Technologies Corp. and Huawei, currently offer, along with Moore Threads Technology Co. Additionally, China currently requires more chips than its domestic businesses can supply. However, Beijing has previously discouraged the adoption of Nvidia’s products, particularly among state-affiliated corporations and agencies, in an effort to reduce the country’s reliance on American technology
In his post, Trump stated, “We will protect national security, create American jobs, and maintain America’s lead in AI.” He added that NVIDIA’s American customers are already making progress with their advanced Blackwell chips, which are not included in this agreement.
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