Bloomberg: Trump Considers Selling Advanced Nvidia Chips to China

US Secretary of Commerce Howard Lutnick told Bloomberg News on Monday evening that President Donald Trump is currently considering whether to allow Nvidia to sell advanced Artificial Intelligence (AI) chips to China.

1. Decision Details and Relevant Chips

• Decision rests with Trump: Lutnick reported that Trump is consulting "many different advisors" to make a decision on potential exports. The decision to approve the sale of Nvidia's AI chips (H200) to China is reportedly up to the President.

• Chip Specifications: The H200 chips, unveiled two years ago, feature greater high-bandwidth memory than their predecessor (H100), enabling them to process data faster.

• Background of Easing: The potential easing of export restrictions signals a more flexible stance toward China, following a trade and technology truce brokered by Trump and Chinese counterpart Xi Jinping last month.

2. Challenges Facing Nvidia

• 2022 Restrictions: The Chinese market poses a significant problem for Nvidia due to export restrictions first imposed in 2022 to ensure the Chinese military does not benefit from US technology.

• Competition: An Nvidia spokesperson said current regulations prevent the company from supplying data center GPUs to China, allowing foreign competitors to gain a significant foothold in that large market.

• Alternative Markets: The restrictions prompted the company to turn to the Middle East for new growth markets. The Commerce Department recently approved shipping the equivalent of 70,000 of Nvidia's new-generation Blackwell AI chips to Saudi firm HumanAI and UAE firm G42.

3. Nvidia's Stance on the New Generation

Nvidia CEO, Jensen Huang, said earlier this month that there were "no ongoing discussions" about selling Blackwell chips to China.