Trump Allows Nvidia Chip Exports to China

The United States will allow Nvidia's (NVDA.O), opens new tab H200 processors, its second-best artificial intelligence chips, to be exported to China and collect a 25% fee on such sales, U.S. President Donald Trump said on Monday.

The decision appears to settle a U.S. debate about whether Nvidia and rivals should maintain their global lead in AI chips by selling to China or withhold the exports, though Beijing has told companies not to use U.S. technology, leaving it unclear whether Trump's decision would lead to new sales.

Nvidia (NVDA.O), opens new tab shares rose 2% in after-hours trading after Trump made the announcement on Truth Social, following a 3% rise during the day on a report by Semafor.

Trump said in his post that he had informed President Xi Jinping of China, where Nvidia's chips are under government scrutiny, about the move and that he "responded positively."

He said the U.S. Commerce Department was finalizing details of the arrangement and the same approach would apply to other AI chip firms such as Advanced Micro Devices (AMD.O), opens new tab and Intel (INTC.O), opens new tab.

Trump's post said the fee to be paid to the U.S. government was "$25%", and a White House official confirmed he meant 25%, higher than the 15% proposed in August.

"We will protect National Security, create American Jobs, and keep America’s lead in AI," Trump wrote on Truth Social. "NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal."

Trump did not say how many H200 chips would be authorized for shipment or what conditions might apply, only that exports would occur "under conditions that allow for continued strong National Security."

Administration officials consider the move a compromise between sending Nvidia's latest Blackwell chips to China, which Trump has declined to allow, and sending China no U.S. chips at all, which officials believe would bolster Huawei's efforts to sell AI chips in China, a person familiar with the matter said.

"Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America," Nvidia said in a statement.