President Donald Trump announced Monday that Nvidia will be permitted to ship its H200 artificial‑intelligence chips to “approved customers” in China and other markets, provided the United States receives a 25 % share of the revenue.
Chinese President Xi Jinping responded positively to the proposal, according to a statement posted by the White House.
The administration emphasized that the arrangement will protect American jobs, reinforce U.S. manufacturing, and generate additional tax revenue.
The Department of Commerce is completing the regulatory details. The same revenue‑sharing model will be applied to AMD, Intel and other leading U.S. semiconductor firms.
Both Nvidia and AMD previously agreed in August to remit 15 % of their Chinese chip‑sales revenue to the U.S. government. At the same time, Chinese regulators issued a warning to domestic firms against using Nvidia’s H20 AI chip, a version specifically designed for the Chinese market.
The H200 is a step above the H20 in performance, though it does not represent Nvidia’s flagship offering.
Nvidia’s shares rose modestly after news that the Commerce Department was moving toward approval, gaining roughly 2 % in after‑hours trading.
“We applaud President Trump’s decision to allow America’s chip industry to compete while supporting high‑paying jobs and domestic manufacturing,” a Nvidia spokesperson told CNBC. “Offering the H200 to vetted commercial customers strikes a thoughtful balance that benefits both the United States and its strategic partners.”
Semiconductors are the backbone of the global AI race, powering everything from data‑center accelerators to autonomous‑vehicle platforms. The technology is also a flashpoint in the broader U.S.–China trade competition.
In 2024, Beijing introduced export controls on rare‑earth minerals—critical inputs for high‑end chip production—prompting the Trump administration to threaten steep tariffs on Chinese imports. After a high‑level meeting in South Korea in October, the two leaders reached a tentative trade truce in which China pledged to cease “retaliatory” actions against U.S. chipmakers.
During that summit, Trump discussed the prospective export of Nvidia chips with Xi, underscoring the strategic importance of semiconductor cooperation even amid geopolitical tension.
Market and Strategic Implications
1. Revenue‑Sharing Model as a Policy Tool
The 25 % U.S. take on H200 sales creates a new fiscal lever that could be expanded to other high‑technology exports. By tying revenue to domestic tax receipts, the policy seeks to offset any perceived loss of strategic advantage while still allowing American firms to capture market share in China’s rapidly expanding AI ecosystem.
2. Competitive Landscape for AI Accelerators
Nvidia’s H200 sits between the mid‑range H20 and the flagship H300 series. Allowing its export to selected Chinese customers helps Nvidia retain a foothold in a market that has increasingly turned to homegrown alternatives such as Huawei’s Ascend series. The move may also pressure AMD and Intel to accelerate their own AI‑chip roadmaps, potentially spurring a new wave of innovation in low‑power, high‑throughput designs.
3. Supply‑Chain Resilience
By keeping the H200 within a controlled export framework, the United States can monitor technology transfer while avoiding a complete shutdown of a critical supply chain. This approach mitigates the risk of sudden shortages that could disrupt global data‑center deployments and AI research initiatives.
4. Geopolitical Signaling
The deal signals a shift from outright bans to calibrated engagement. It demonstrates that the U.S. is willing to use targeted economic instruments—rather than blanket restrictions—to maintain influence over the AI hardware market while still protecting national security interests.
5. Impact on Shareholders
Both Nvidia and AMD have seen modest share price gains following the announcement, reflecting investor optimism that the revenue‑sharing framework will unlock previously inaccessible Chinese demand without compromising long‑term strategic positioning.
Outlook
Analysts expect the Commerce Department’s final rule to be published within the next few weeks. If the framework proves effective, it could become a template for future high‑tech export agreements, especially in emerging fields such as quantum computing and advanced materials.
For investors, the key takeaway is that U.S. semiconductor firms may soon regain a slice of the Chinese AI market while delivering a measurable return to the federal treasury. The balance of commercial opportunity and geopolitical risk will likely shape the trajectory of the AI hardware sector for the remainder of the decade.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/14242.html
