US President Donald Trump has signed off on a major deal that would allow Nvidia, the US-based tech giant, to sell its powerful AI chips to China, marking a significant breakthrough for the company's CEO Jensen Huang.
In a surprise move, the White House announced Monday that it had cleared the way for Nvidia to ship its H200 products to approved customers in China and other countries under conditions that would ensure national security. The decision was made just weeks after the US prohibited sales of Nvidia's most advanced chips to China citing national security concerns.
According to Trump, he informed President Xi of China about the new arrangement and received a positive response from him. As part of the deal, the US would receive 25% of the proceeds, in line with an unorthodox plan by Trump to take a financial cut from private business dealings.
However, not everyone is pleased with the move. Democratic senators Elizabeth Warren and Andy Kim have raised concerns that selling these chips to China could compromise national security, particularly given China's history of using its vast technological capabilities for surveillance, censorship, and military applications.
Despite these concerns, Nvidia has welcomed the decision, saying it strikes a "thoughtful balance" between supporting US jobs and manufacturing while allowing approved customers in China to access its advanced technology. The company's CEO Jensen Huang has worked closely with Trump since his inauguration and has made several trips to the White House in an effort to secure this deal.
The move could be worth billions of dollars for Nvidia, which is already valued at $4.5 trillion. It also marks a significant shift in the US government's approach to export controls on powerful chips, with Trump condemning the previous administration's policies as "over" and promising that his administration would always prioritize America's interests.
The deal is seen as a major victory for Nvidia, which has been lobbying for this access to the Chinese market. The company has pledged to invest $500 billion in AI infrastructure in the US over the next four years, and this deal could be a significant boost to its business.
In a surprise move, the White House announced Monday that it had cleared the way for Nvidia to ship its H200 products to approved customers in China and other countries under conditions that would ensure national security. The decision was made just weeks after the US prohibited sales of Nvidia's most advanced chips to China citing national security concerns.
According to Trump, he informed President Xi of China about the new arrangement and received a positive response from him. As part of the deal, the US would receive 25% of the proceeds, in line with an unorthodox plan by Trump to take a financial cut from private business dealings.
However, not everyone is pleased with the move. Democratic senators Elizabeth Warren and Andy Kim have raised concerns that selling these chips to China could compromise national security, particularly given China's history of using its vast technological capabilities for surveillance, censorship, and military applications.
Despite these concerns, Nvidia has welcomed the decision, saying it strikes a "thoughtful balance" between supporting US jobs and manufacturing while allowing approved customers in China to access its advanced technology. The company's CEO Jensen Huang has worked closely with Trump since his inauguration and has made several trips to the White House in an effort to secure this deal.
The move could be worth billions of dollars for Nvidia, which is already valued at $4.5 trillion. It also marks a significant shift in the US government's approach to export controls on powerful chips, with Trump condemning the previous administration's policies as "over" and promising that his administration would always prioritize America's interests.
The deal is seen as a major victory for Nvidia, which has been lobbying for this access to the Chinese market. The company has pledged to invest $500 billion in AI infrastructure in the US over the next four years, and this deal could be a significant boost to its business.
This deal is like, super complex right? On one hand, I get why the US wants to make some dough from Nvidia's tech sales - it's a huge company worth trillions. But on the other hand, China has got a history of using their tech for surveillance and all that. It's like, can we really trust they won't use this tech against us? 
... i mean, i know trump wants to make a good impression on xi but at what cost? 
... democratic senators are right to be worried about national security... can we really trust china not to sell this tech back to other countries or use it for their own agenda? 
... and 25% of proceeds is just crazy talk 
25% of the proceeds sounds like a sweet deal for us, but elizabeth warren andandy kim are totally right about china's history with tech & surveillance 
what if they're just gonna use it against us? 
. That's gonna make them super happy, and who doesn't love a good deal? 
. We already know China has some pretty shady tech practices going on, so it's hard to see how this deal is really gonna help with that. Plus, what if these chips end up being used for... let's just say not-so-nice things? 
I'm all for supporting American jobs and manufacturing, but can't we also be cautious about who we're giving sensitive tech to? 
. And let's be real, Trump's got his eyes on the bottom line here - 25% of those proceeds is some serious cash 
. Still, I guess that's just how it goes sometimes - you've got to take calculated risks and hope for the best 
The White House says national security concerns are being addressed, but some senators are still skeptical about the decision's implications. Can we trust that this deal won't backfire and put US interests at risk? Only time will tell... 