US President Donald Trump has approved a deal to sell Nvidia H200 artificial intelligence (AI) chips to China.
Trump also stressed that only ‘approved customers’ in China and other regions will be allowed to buy the chips, while the US government will receive 25% of the value of each sale.
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This announcement is highly anticipated because NVIDIA was previously prevented from exporting AI chips to China, which resulted in their market share in the country falling to zero a few months ago.
This good news comes after his meeting with Nvidia CEO Jensen Huang last week.
Trump has repeatedly stated that the US must win the global AI race, even though China has invested heavily in its own domestic industry.
The H200 chip is the second most powerful chip in Nvidia’s inventory and plays a key role in performing various AI tasks.
In addition, the chip offers higher processing power than the H20 chip that was produced specifically for the Chinese market.
However, the performance of the H200 chip still lags behind the NVIDIA Blackwell Ultra B300 that was launched earlier this year.
The US Department of Commerce is currently finalizing a similar approach for AMD, Intel and other chip manufacturers.
