AI Chip Exports: U.S. Approves Nvidia's H200 Sales to China Amidst Security Debate

The United States has granted permission for Nvidia's H200 AI chips to be sold to China with a 25% export fee. This move seeks to balance national security interests while maintaining America's edge in AI technology, amidst fears of aiding China's military capabilities.

In a strategic move to balance national security and technological leadership, the United States has decided to allow the export of Nvidia's H200 artificial intelligence processors to China, with a 25% fee collected on sales, announced by U.S. President Donald Trump.

The decision settles a contentious debate on AI chip exports, with China's reaction remaining uncertain as U.S. firms like Nvidia and competitors such as AMD and Intel await further details from the U.S. Commerce Department. Concerns linger about the potential military implications, though Trump emphasized job creation and maintaining AI leadership.

Critics worry that these exports could bolster China's military capabilities, despite statements from Nvidia and expectations for improved U.S.-China relations. Analysts suggest China aims to enhance its chip-making abilities independently, keeping a watchful eye on international developments.

(With inputs from agencies.)