Trump Allows Nvidia to Sell AI Chips to China: What It Means

President Donald Trump has given Nvidia the green light to sell its H200 AI chips to China, but there's a catch. The company will have to pay a 25% fee to the U. S. government for each shipment. This decision comes after weeks of discussions and is seen as a big win for Nvidia, which has been pushing to regain access to the Chinese market. The H200 chip is a significant upgrade from what China can currently access. It's nearly 10 times more powerful than the chips previously allowed for export. However, it's not clear if China will actually allow its tech companies to buy these chips. In the past, Beijing has discouraged the use of Nvidia's products, favoring domestic alternatives. Trump's decision has sparked criticism from some U. S. lawmakers, who argue that it could give China an edge in the AI race. They also worry about the potential impact on national security. On the other hand, Nvidia sees this as a way to support American jobs and maintain its lead in AI technology. The H200 is part of Nvidia's older Hopper lineup, with more advanced chips like Blackwell and Rubin already available in the U. S. Despite this, the H200 is still a big step up from the H20 chip, which was previously approved for sale to China but ultimately blocked by Chinese authorities. This move marks a shift in U. S. policy, which has been tightening export controls on advanced technologies to China since 2022. It remains to be seen how this decision will play out and what impact it will have on the global AI landscape.