In a Truth Social post on Monday, President Donald Trump declared that he will lift export restrictions on Nvidia’s H200 processors to China. This is a significant reversal in the larger trade spat between the two largest economies in the world.
The sophisticated chips are essential for completing AI-generated work. Trump noted that the agreement does not include Nvidia’s highly sought-after Blackwell chips or next-generation Rubin chips.
Due to the recent surge in demand for AI, Nvidia, the most valuable business in the world and the top chipmaker, has had tremendous success. However, this achievement has also put it squarely in the midst of international disputes over who will prevail in the global competition to control artificial intelligence.
Trump also stated in his statement that “25% will be paid to the United States of America,” potentially suggesting that the US government will receive 25% of Nvidia’s sales proceeds.
The announcement follows Trump’s meeting with Jensen Huang, CEO of Nvidia, last week. Even while China has made significant investments in its own domestic industry, Trump has often stated that the United States must win the global AI competition.
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