Nvidia's H200 AI Chip Gains U.S. Approval Amid Tense China Relations

The U.S. government has approved the export of Nvidia's H200 AI chip to China, with a fee per chip. President Trump announced the decision, presenting it as a compromise benefiting national security and job creation. Concerns remain over China's military advancement and economic implications.

Nvidia has received approval from the U.S. government to export its H200 artificial intelligence chips to China, setting a precedent as it collects a fee for each export. This decision, announced by U.S. President Donald Trump, marks a significant development in the ongoing tech relations between the two nations.

The approval came after Trump communicated the move to China's President Xi Jinping, who responded positively, signaling a potential thaw in tech trade tensions. The U.S. Commerce Department is finalizing details, aiming to extend similar permissions to other AI chipmakers like AMD and Intel.

Critics, however, voice concerns about possible risks to U.S. national security and economic interests, fearing the chips could bolster China's military capacity. Despite these apprehensions, the decision is viewed as a strategic compromise, offering an alternative to a full technology blockade while keeping diplomatic channels open.

(With inputs from agencies.)