Trump Administration Allows Nvidia to Export H200 AI Chips to China with 25% Surcharge
The Trump administration has granted Nvidia permission to export its powerful H200 AI chips to China, imposing a 25% US surcharge as part of the agreement. This move aims to recapture lost business and comes as the US Commerce Department finalizes the deal amidst a relaxation of Biden-era restrictions.
Nvidia's CEO Jensen Huang lobbied for the approval and welcomed the decision, viewing it as a balanced approach that benefits the United States. Following the announcement, Nvidia's shares rose about 2.3% in after-hours trading on Wall Street.
The H200 chips are Nvidia's second-most powerful AI chips and are significantly more capable than the H20, which faced a sales ban to China in April. This decision is expected to generate billions in revenue for Nvidia, currently valued at approximately $4.5 trillion.
However, the move has drawn criticism from Democratic senators Shaheen, Coons, Reed, and Warren, who have urged for a reversal. They warn that allowing the sale could enhance China's military technology capabilities and undermine US leadership in AI innovation.
From China's perspective, firms such as AI company DeepSeek have highlighted the lack of access to advanced American AI chips as a major hurdle in competing globally, underscoring the potential impact of the export approval on China's AI industry.
