US to Allow the Export of Nvidia’s H200 Chip to China, Trump Says

The US has will allow Nvidia's H200 processors, its second-best AI chips, to be exported to China, while collecting a 25% fee on sales. The decision is a compromise between maintaining US dominance in AI chips or withholding exports. President Donald Trump said the decision was made to protect national security, create American jobs, and keep US leadership in AI. Trump said he informed China’s President Xi Jinping, who “responded positively.” He confirmed that the Commerce Department is finalizing details of the agreement and the same approach will apply to AMD and Intel. The H200 chip is nearly six times as powerful as the H20, the most advanced AI semiconductor currently allowed for export to China. Beijing has told companies not to use US technology, and so it is unclear whether Trump's move will lead to new sales. Critics in Washington warn selling advanced AI chips could strengthen China's military modernization. The announcement boosted Nvidia shares by 2% in after-hours trading.