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President Donald Trump announced on Sunday (local time) that he will permit the shipment of Nvidia's H200 artificial intelligence (AI) chips to "approved customers" in China and other countries, subject to specific conditions that maintain U.S. national security. President Trump revealed the decision on his social media platform, Truth Social, stating he had informed Chinese President Xi Jinping, who reportedly responded positively.

This decision marks a significant shift from the U.S. government's stringent controls on the export of Nvidia GPUs to China since 2022, regulations driven by concerns over the potential military application of China's rapidly developing AI technology. The H200 chip is notably powerful, boasting a performance nearly six times greater than the H20—currently the most advanced AI chip legally exportable to China—and is expected to have a considerable impact on the Chinese AI and tech industries.

Declaring an End to the Era of 'Degraded' Products

President Trump emphasized that the move is intended to support American jobs, strengthen U.S. manufacturing, and benefit American taxpayers. He claimed that "25% will be paid to the U.S.," referring to the chip sales, though the specific base amount this 25% applies to was not explicitly clarified.

In a sharp critique of the previous administration's regulatory approach, Trump stated, "The Biden Administration forced our great companies to spend billions of dollars making 'degraded' products that nobody wanted—a terrible idea that slowed innovation and hurt American workers. That era is now over." Nvidia CEO Jensen Huang has been intensely lobbying the Trump administration for regulatory relief, arguing that export controls had pushed the company out of the world's largest semiconductor market.

Blackwell and Rubin Chips Remain Restricted

Crucially, the export authorization does not extend to Nvidia's latest chips, the 'Blackwell chip,' or the upcoming 'Rubin chip.' President Trump asserted that the U.S. will "protect our National Security, create American jobs, and keep America first in Artificial Intelligence," adding that U.S. customers are already moving forward with the advanced Blackwell and Rubin chips, irrespective of this deal.

This approach is viewed as a compromise between national security concerns and commercial interests, allowing the export of the highly advanced H200 while maintaining tight control over the very latest AI technology. The President confirmed that the Commerce Department is finalizing the details and that the same approach will be applied to other major American chipmakers, including AMD and Intel.

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