US President Donald Trump has announced that Nvidia will be allowed to sell its powerful AI chips to China, marking a significant shift in the country's stance on tech exports. The move comes after months of lobbying by Nvidia CEO Jensen Huang, who had sought to open up sales in the Chinese market.
The decision marks a departure from the US government's previous ban on selling Nvidia's most advanced chips to China over national security concerns. However, Trump has stated that the country will receive 25% of the proceeds from any deals struck with China, more than the previously agreed 15% stake.
Nvidia's H200 chips are its second-most powerful AI computer chip, and their sale to China is expected to be a major windfall for the company. The move could potentially provide billions of dollars in revenue for Nvidia, which is already valued at $4.5 trillion.
The decision has been met with criticism from some lawmakers, who have questioned the legality of Trump's plans to receive a significant stake in private business dealings. Democratic senators Elizabeth Warren and Andy Kim wrote to the Commerce Secretary last week expressing their concerns over selling chips to China, citing national security risks.
However, Nvidia CEO Jensen Huang has defended his company's decision to partner with Chinese tech firms. He had previously stated that the US bans on chip exports were a "strategic mistake" for Nvidia, which had seen its market share in China decline significantly due to the restrictions.
The sale of AI chips to China is also expected to support US jobs and manufacturing, according to an Nvidia spokesperson. The company has pledged to invest $500 billion in AI infrastructure in the US over the next four years.
The move comes as tensions between the US and China continue to escalate, with both countries engaging in a trade war and vying for influence in the Asia-Pacific region. However, Trump's announcement appears to mark a significant shift towards greater cooperation between the two nations on tech exports.
The decision marks a departure from the US government's previous ban on selling Nvidia's most advanced chips to China over national security concerns. However, Trump has stated that the country will receive 25% of the proceeds from any deals struck with China, more than the previously agreed 15% stake.
Nvidia's H200 chips are its second-most powerful AI computer chip, and their sale to China is expected to be a major windfall for the company. The move could potentially provide billions of dollars in revenue for Nvidia, which is already valued at $4.5 trillion.
The decision has been met with criticism from some lawmakers, who have questioned the legality of Trump's plans to receive a significant stake in private business dealings. Democratic senators Elizabeth Warren and Andy Kim wrote to the Commerce Secretary last week expressing their concerns over selling chips to China, citing national security risks.
However, Nvidia CEO Jensen Huang has defended his company's decision to partner with Chinese tech firms. He had previously stated that the US bans on chip exports were a "strategic mistake" for Nvidia, which had seen its market share in China decline significantly due to the restrictions.
The sale of AI chips to China is also expected to support US jobs and manufacturing, according to an Nvidia spokesperson. The company has pledged to invest $500 billion in AI infrastructure in the US over the next four years.
The move comes as tensions between the US and China continue to escalate, with both countries engaging in a trade war and vying for influence in the Asia-Pacific region. However, Trump's announcement appears to mark a significant shift towards greater cooperation between the two nations on tech exports.
... I mean, I get it, they've been trying to sell those AI chips to China for ages and it's about time they got some green light 
. But 25% of the proceeds? That sounds like a pretty sweet deal to me 
. And don't even get me started on how this is gonna affect US jobs 
... I mean, supposedly Nvidia's gonna invest $500 billion in AI infrastructure here and that should create some new gigs 
. But honestly, it feels like they're just trying to spin this as a win for the US economy 
. And what about those national security concerns? I'm not buying it 
... seems like Trump's just trying to appease China and Nvidia at the same time 
. Not sure how I feel about this one 
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. it's about time we get some of that sweet, sweet revenue 
what about national security? i mean we know the us is struggling with cyber threats and stuff but are we really willing to sell our most advanced tech to china without even a fight? 
I mean, Nvidia just defended their decision to partner with Chinese tech firms and said it was a "strategic mistake" for not doing so before... what changed now? 
. On the other hand, if this can help US jobs and manufacturing then I'm all for it 
. It's just that our gov't has these strict rules in place for a reason... I guess only time will tell how this whole thing plays out 
.
... the only thing that worries me is the 25% stake trump wants, but I guess that's just business as usual 