Trump admin reviews Nvidia AI chip sales to China - Trump backs chip sales to China

The Trump administration has initiated a multi-agency review to potentially allow the sale of Nvidia's H200 AI chips to China, indicated as a significant policy shift. Trump has suggested that controlled sales would require a 25% fee to the U.S. government, aimed at sustaining technological leadership. The Commerce Department has circulated license applications for scrutiny by other departments, giving them 30 days to assess, with the president making the final call if disagreements arise. This review has reignited debates in Washington as concerns arise that these advanced AI chips could bolster China's military capabilities. The H200, though less powerful than Nvidia's top Blackwell chips, is a potent processor not previously permitted for sale to China. Nvidia is allegedly considering ramping up H200 production, facing initial demand from China surpassing supply. However, the uncertainty remains regarding whether Chinese authorities will approve local purchases if U.S. licenses are issued. This situation is coupled with discussions within the administration favoring limited sales to curb Chinese competitors like Huawei. While this may seem positive for Nvidia, the longstanding nature of Trump's intent might lead to a subdued market response.