Trump Approves Sale of Nvidia H200 AI Chips to Approved Chinese Customers Amid Security Concerns
Former President Donald Trump has approved Nvidia to sell its H200 AI chips to approved Chinese customers, with the US Commerce Department responsible for vetting these transactions. This move extends to other US chipmakers such as AMD. Previously, Nvidia had been banned from selling its most advanced chips to China. Trump reversed this ban in July following lobbying efforts by Nvidia founder Jensen Huang, who aimed to protect American leadership in artificial intelligence.
Despite the approval, Beijing reportedly instructed Chinese firms to halt purchases of Nvidia chips manufactured for the Chinese market. Nvidia welcomed the decision, describing it as a balanced outcome that benefits America, and the company’s shares rose slightly following the news. Trump claimed that 25% of Chinese revenues would be paid to the United States as part of the arrangement, although this assertion was noted in the article.
The White House did not immediately respond to requests for comment, and the BBC sought clarification on the matter. Concerns from national security hawks in Congress are anticipated given the potential implications. Experts from Georgetown University’s Center for Security and Emerging Technology (CSET) warn that the Chinese People’s Liberation Army (PLA) uses advanced chips from US firms to enhance AI-enabled military capabilities, underscoring ongoing security concerns about widening access to such technology.
