🤯 Trump's Shock Deal: China Gets Nvidia Chips?! 🚀

World News

Trump Greenlights Nvidia Chip Sales to China
Speaking on Monday, US President Donald Trump announced a significant shift in U.S. export control policy, authorizing Nvidia to sell its advanced H200 chip to China. This decision followed a direct communication with Chinese President Xi Jinping and included a stipulation that 25 percent of sales would be paid to the U.S. government, a move intended to “support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers,” as Trump stated on Truth Social.

H200: Nvidia’s Most Powerful Chip
The H200, launched in 2023, represents Nvidia’s most powerful chip outside of the latest-generation Blackwell series. It’s nearly six times more powerful than the previous H20 chip, signifying a considerable technological leap in processing capabilities, and it's designed to serve as a crucial element in the development of advanced artificial intelligence applications.

A Strategic Payment Arrangement
A key component of the agreement is that 25 percent of sales will be paid to the U.S. government. This arrangement reflects a deliberate effort to generate revenue while simultaneously acknowledging the potential national security implications associated with advanced technology exports.

Market Reaction and Anticipated Innovation
Following the announcement, Nvidia shares rose more than 2 percent in after-hours trading, indicating investor optimism. Analysts believe this move could accelerate innovation within the AI sector and introduce greater market dynamics, as the H200’s capabilities promise to reshape the landscape of artificial intelligence development.

Potential Risks to U.S. AI Dominance
Despite the perceived benefits, the Department of Justice has characterized the H200 chips as “building blocks of AI superiority,” highlighting a potential risk. The decision could undermine the administration’s broader efforts to ensure the U.S. maintains dominance in the global AI landscape, particularly considering the technology's capabilities.