Trump gives Nvidia approval to sell powerful AI chips to China

The United States will allow Nvidia's H200 processors, its second-best artificial intelligence (AI) chips, to be exported to China and collect a 25 per cent fee on such sales, US President Donald Trump said on Dec 8.

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Nvidia shares rose 2 per cent in after-hours trading after Mr Trump made the announcement on Truth Social, following a 3 per cent rise during the day on a report by Semafor.

Mr Trump said in his post that he had informed President Xi Jinping of China, where Nvidia's chips are under government scrutiny, about the move, and he "responded positively".

Mr Trump said the US Commerce Department was finalising details of the arrangement, and the same approach would apply to other AI chip firms such as Advanced Micro Devices (AMD) and Intel. Mr Trump's post said the fee to be paid to the US government was "$25%", and a White House official confirmed he meant 25 per cent, higher than the 15 per cent proposed in August.

"We will protect National Security, create American Jobs, and keep America's lead in AI," Mr Trump wrote on Truth Social. "NVIDIA's US Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal."

Mr Trump did not say how many H200 chips would be authorised for shipment or what conditions might apply, only that exports would occur "under conditions that allow for continued strong National Security".