Trump Greenlights Nvidia AI Chip Exports to China Amid Security Concerns

The United States, led by President Donald Trump, will allow the export of Nvidia's H200 AI chips to China, imposing a 25% fee. This decision addresses ongoing debates about maintaining U.S. technological leadership while balancing national security concerns regarding China's potential military advancements.

The United States is set to allow the export of Nvidia's H200 AI chips to China, President Donald Trump announced, specifying a 25% fee on these sales. This move marks a shift in the U.S. strategy regarding AI technology exports amidst ongoing debates about national security and technological leadership.

Nvidia's stock saw a 2% increase following the announcement, building on a prior 3% rise. According to Trump, he informed Chinese President Xi Jinping, who reacted positively. The U.S. Commerce Department is detailing the arrangement, which will affect other AI chip firms like AMD and Intel.

Controversies surround the decision, with experts expressing concerns over potential enhancements to China's military capabilities. Nevertheless, Nvidia asserts that allowing H200 chip exports to select commercial customers provides a balanced solution benefiting the U.S. economy.

(With inputs from agencies.)