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Nvidia Chips Allowed in China Under New Trump Deal
9 Dec
Summary
- Trump administration approved Nvidia H200 AI chip sales to China.
- Nvidia must pay 25% of H200 sales value to the US government.
- This deal could add $2 billion to $5 billion in annual revenue for Nvidia.
Nvidia's H200 artificial-intelligence chips have received approval for sale to China and other regions under a new policy announced by President Trump. This decision lifts previous export restrictions, reinstating a key product line for Nvidia's crucial data-center business. The agreement mandates a 25% revenue share from these sales to the U.S. government, a move that has restored investor confidence.
Analysts project that this reopened channel could generate an additional $2 billion to $5 billion in annual revenue for Nvidia. This development comes after months of navigating shifting rules that had compelled the company to develop less advanced chips for the Chinese market. The approval signifies a departure from earlier Biden-era bans on high-performance chips.
While the approval covers the H200 chip, more advanced models like Blackwell remain restricted. U.S. officials will still vet buyers, but this framework may extend to other chipmakers. Despite potential challenges from China's domestic semiconductor advancements and revenue-sharing impacts, the decision provides Nvidia with much-needed market access.
