Trump clears way for Nvidia to sell powerful AI chips to China

Before Monday's announcement, the US had prohibited sales of Nvidia's most advanced chips to China over national security concerns. Trump posted to Truth Social on Monday: "I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security. Trump said the Department of Commerce was finalising the details and that he was planning to make the same offer to other chip companies, including Advanced Micro Devices (AMD) and Intel. Nvidia's H200 chips are the company's second most powerful, and far more advanced than the H20, which was originally designed as a lower-powered model for the Chinese market that would not breach restrictions, but which the US banned anyway in April. The president said the US would receive 25% of the proceeds, more than the 15% previously agreed to with Nvidia in an earlier deal to lift restrictions, and following similar unorthodox plans for the federal government to take a financial cut from private business dealings.