US to Allow Nvidia to Sell Advanced Chips to China, with 25% Cut for US Government
In a surprise move, President Trump announced on Monday that the US government will permit California-based Nvidia to sell its advanced H200 computer chips to "approved customers" in China, marking a significant shift in the country's stance on semiconductor exports.
Under the deal, the US government will take a 25% cut of chip sales to China, with the remaining 75% going to Nvidia. However, the company's more advanced Blackwell system and its soon-to-be-released Rubin system will not be included in the sales, according to the President.
Trump informed Chinese President Xi Jinping of his decision, which he said received a "positive" response from Beijing. The US Department of Commerce is finalizing the details of the deal, with similar terms expected to apply to other US-based chip companies, including AMD and Intel.
The move has been welcomed by Nvidia, with the company hailing it as a "thoughtful balance that is great for America." In contrast, China's foreign ministry representative described the cooperation between the two nations as essential and mutually beneficial.
The decision comes amid growing tensions between the US and China over AI technology exports. The Biden administration had restricted exports of advanced chip technology to certain Chinese entities, citing national security concerns and a desire to maintain the US artificial intelligence industry's competitive edge.
Nvidia has long argued that export controls have backfired by compelling China to build up its own homegrown AI chip industry. CEO Jensen Huang met with Trump several times to discuss export controls before this announcement, highlighting the complexity of the issue.
The move marks a significant shift in the US-China semiconductor landscape, and it remains to be seen how it will impact bilateral relations and global competition in the tech sector.
In a surprise move, President Trump announced on Monday that the US government will permit California-based Nvidia to sell its advanced H200 computer chips to "approved customers" in China, marking a significant shift in the country's stance on semiconductor exports.
Under the deal, the US government will take a 25% cut of chip sales to China, with the remaining 75% going to Nvidia. However, the company's more advanced Blackwell system and its soon-to-be-released Rubin system will not be included in the sales, according to the President.
Trump informed Chinese President Xi Jinping of his decision, which he said received a "positive" response from Beijing. The US Department of Commerce is finalizing the details of the deal, with similar terms expected to apply to other US-based chip companies, including AMD and Intel.
The move has been welcomed by Nvidia, with the company hailing it as a "thoughtful balance that is great for America." In contrast, China's foreign ministry representative described the cooperation between the two nations as essential and mutually beneficial.
The decision comes amid growing tensions between the US and China over AI technology exports. The Biden administration had restricted exports of advanced chip technology to certain Chinese entities, citing national security concerns and a desire to maintain the US artificial intelligence industry's competitive edge.
Nvidia has long argued that export controls have backfired by compelling China to build up its own homegrown AI chip industry. CEO Jensen Huang met with Trump several times to discuss export controls before this announcement, highlighting the complexity of the issue.
The move marks a significant shift in the US-China semiconductor landscape, and it remains to be seen how it will impact bilateral relations and global competition in the tech sector.
... I mean, we've been hearing about trade tensions between the US and China for ages, but not exactly sure what's gonna happen next. So, the US is basically allowing Nvidia to sell these advanced chips to China, but with a 25% cut for the government? That's like, half of the profit going to the government 
... I don't know, it just seems like a lot of money. And what about the other chip companies, like AMD and Intel? Are they gonna get a similar deal too? 
. currently, the pipe is closed 
because of export controls. but now, it's partially open 
. this change is like adding more pipes or branches to the original design. it still allows some control over who can access advanced chip tech in china, but also lets more chips flow through 
.
. us has some missing pieces and china has others that we need. do we trade those pieces away to stay competitive? 
It'll be interesting to see how this plays out in the long run. Maybe it'll lead to some new trade agreements or something? 
Also, I'm curious about how this is gonna affect AMD and Intel - are they next on Nvidia's list? 
if we dont allow chinese companies 2 get their hands on advanced chips, they'll jus build it theirsels
so america is gonna sell advanced chips to china 
but they get 25% of it back 
like a middleman or something 
? 
and what about those other chip companies like amd and intel 
but seriously, this move is a big deal. i mean, we've been all about restricting exports of advanced chip tech to china because of ai security concerns, but now we're just kinda...giving them the tools they need 
. I guess only time will tell how this plays out 
...
nvidia's been saying export controls are a total failure for years now, and it looks like trump's finally listened. 25% cut for the us gov is still better than nothing tho 
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. And what about those restricted exports? Were they for nothing? 
. That's a pretty significant chunk of change. Maybe this deal will finally help them break into the Chinese market and start making some real gains in AI tech 
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Here are some stats that interest me:
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. Maybe it'll help China catch up with the US in AI tech? Or maybe it just means more chips will end up in China 
!
Does this change mean China is gonna start developing their own AI tech? 
The AI game is heating up and the US is playing catch-up 
. i mean, can we really trust china with this kinda power? 
.