US President Donald Trump has cleared the way for Nvidia, a leading American chip maker, to start selling its advanced artificial intelligence (AI) chips to China. This move marks a significant shift in US policy towards China, which had previously banned the sale of Nvidia's most powerful chips due to national security concerns.
Trump announced on Monday that he had informed Chinese President Xi Jinping about the decision and said it was "positive". He also stated that the Department of Commerce is finalising the details of the deal, which will allow Nvidia to ship its H200 products to approved customers in China. The US will receive 25% of the proceeds from these sales, more than previously agreed upon.
The move has been welcomed by Nvidia, with the company saying it strikes a "thoughtful balance that is great for America". Trump claimed that selling chips to China would support US jobs and manufacturing. However, some lawmakers have questioned the legality of such arrangements, including Democratic senators Elizabeth Warren and Andy Kim, who expressed concerns about the potential risks to national security.
The decision comes after years of US curbs on AI exports, which had provided a rare chance for China's domestic chip industry to grow and catch up. Nvidia's CEO Jensen Huang has been a key figure in lobbying Trump to open up sales in China, and he has worked closely with the president since his inauguration.
China's response to the announcement is yet to be seen, but some analysts believe that this move could be a strategic mistake for China, which had imposed its own controls on imports of Nvidia chips earlier this year. The Chinese tech industry has been struggling to compete with US giants like Nvidia and AMD, and any advantage gained from this deal could be short-lived.
For Nvidia, the decision could mean a significant windfall worth billions of dollars. The company is already valued at $4.5 trillion and has pledged to invest $500 billion in AI infrastructure in the US over the next four years. However, some critics have questioned whether selling chips to China is a "win" for America, given the potential risks to national security.
Ultimately, this move reflects Trump's commitment to putting America first and his willingness to challenge conventional wisdom on trade and foreign policy. As he wrote on social media, "That Era is OVER! My Administration will always put America FIRST."
Trump announced on Monday that he had informed Chinese President Xi Jinping about the decision and said it was "positive". He also stated that the Department of Commerce is finalising the details of the deal, which will allow Nvidia to ship its H200 products to approved customers in China. The US will receive 25% of the proceeds from these sales, more than previously agreed upon.
The move has been welcomed by Nvidia, with the company saying it strikes a "thoughtful balance that is great for America". Trump claimed that selling chips to China would support US jobs and manufacturing. However, some lawmakers have questioned the legality of such arrangements, including Democratic senators Elizabeth Warren and Andy Kim, who expressed concerns about the potential risks to national security.
The decision comes after years of US curbs on AI exports, which had provided a rare chance for China's domestic chip industry to grow and catch up. Nvidia's CEO Jensen Huang has been a key figure in lobbying Trump to open up sales in China, and he has worked closely with the president since his inauguration.
China's response to the announcement is yet to be seen, but some analysts believe that this move could be a strategic mistake for China, which had imposed its own controls on imports of Nvidia chips earlier this year. The Chinese tech industry has been struggling to compete with US giants like Nvidia and AMD, and any advantage gained from this deal could be short-lived.
For Nvidia, the decision could mean a significant windfall worth billions of dollars. The company is already valued at $4.5 trillion and has pledged to invest $500 billion in AI infrastructure in the US over the next four years. However, some critics have questioned whether selling chips to China is a "win" for America, given the potential risks to national security.
Ultimately, this move reflects Trump's commitment to putting America first and his willingness to challenge conventional wisdom on trade and foreign policy. As he wrote on social media, "That Era is OVER! My Administration will always put America FIRST."
. I mean, China's been trying to catch up with the US tech industry for years, and now we're just handing them some of our most advanced AI chips? It doesn't add up to me. And what's in it for America? We're basically selling our secrets to the enemy... or so it feels 
. I'm still trying to wrap my head around this one. I thought Trump was all about making America great again, but is this really part of that plan? 
... so, basically, the US is now allowing Nvidia to sell its super powerful AI chips to China? Like, isn't that kinda weird considering all the drama about national security and whatnot?
... sounds like Trump is more interested in lining his own pockets than actually helping America out.
I'm not convinced that 25% of the proceeds is enough compensation, especially considering the risks to national security. This deal reeks of a trade-off for more diplomatic ties with China... but at what cost? 
. But on the other hand, we gotta consider the national security concerns here 
. I'm all about America being strong and competitive, but we can't just rush into deals without thinking about the potential risks 
.
. Either way, it's definitely gonna be interesting to see how things play out in the next few months 
. I hope Nvidia and the US can make some smart decisions about how they're using these chips and benefiting from them 
. And now they'll be raking in that dough without even having to share it with the US 
. It feels like more of a "we can get rich off China" vibe 
!
. But on the other hand, I'm worried about national security and what could go wrong 
.
.
. One thing's for sure: we'll be seeing some major changes in the tech world over the next few years 
, like who's gonna stop us? some lawmakers are worried about national security tho 
and whether this is a strategic mistake for china 
.
. If Nvidia can sell those AI chips to China without causing any major national security issues, that's a win-win right? 
I guess only time will tell how this whole thing plays out 
. On one hand, it's a win-win for Nvidia and the US economy, as it paves the way for increased AI chip exports and stimulates American manufacturing jobs 
. However, there are also concerns about national security risks and potential strategic backlash from China 
.
. If they thought they were getting a free pass, they might be surprised to find out they're not 
.
.
Nvidia makes billions, but like what's in it for us? 
. It's always about making that "thoughtful balance" sound good on paper, but when you get down to it, it's all about lining Trump's pockets and screwing over everyone else 
.
. China's tech industry is already struggling, so what's the real gain here? 
. What other industries will we be opening up to Chinese players? 
. One thing's for sure: Trump is keeping it interesting 
️!
. Don't get me wrong, I'm all for US companies profiting and creating jobs, but at what cost? Those senators are right to be skeptical about national security implications - we can't just let our guard down like that 
.
On the other hand, if anything goes south, we could end up on the losing side of this trade-off... either way, it's all pretty murky 
.