Trump agrees to sell Nvidia’s most advanced computer chips used in artificial intelligence to China

WASHINGTON (AP) — President Donald Trump said Monday he will allow Nvidia to sell an advanced type of computer chip used in developing artificial intelligence to “authorized customers” in China.

There have been concerns about allowing the sale of advanced computer chips to China because they could help the country better compete against the United States in building AI capabilities, but there has also been a desire to develop the AI ​​ecosystem with US companies such as chip maker Nvidia.

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The chip, known as the H200, isn’t Nvidia’s most advanced product. Those chips, called Blackwell and Next Robin, were not part of what Trump agreed to.

Trump said on social media that he informed Chinese leader Xi Jinping of his decision and “President Xi responded positively!”

Trump said in his post: “This policy will support American jobs, boost American manufacturing, and benefit American taxpayers.”

Nvidia said in a statement that it applauded Trump’s decision, saying the option would support domestic manufacturing, and that by allowing the Commerce Department to vet commercial customers, it would “strike a thoughtful balance” on economic and national security priorities.

Trump said the Commerce Department is “finalizing the details” for other chipmakers such as AMD and Intel to sell their technology abroad.

The approval of licenses to sell Nvidia’s H200 chips reflects the growing power and close relationship that the company’s founder and CEO, Jensen Huang, has with the president. But there have been concerns that China could find ways to use chips to develop its own artificial intelligence products in ways that could pose risks to US national security, a key concern for the Biden administration which has sought to limit exports.

Nvidia’s market cap is $4.5 trillion and Trump’s announcement appears to have sent the stock slightly higher in after-hours trading.