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The US President approved the sale of Nvidia’s second-most powerful chip, the H200, to Beijing, according to The New York Times.
The decision followed months of trade between supporters of the technology industry and supporters of a defense course, as these technologies could provide China with military and economic assistance. This decision was a major victory for Nvidia’s CEO, who had been lobbying the White House for months to ease export restrictions.
Trump announced that other chip manufacturers, such as Advanced Micro Devices and Intel, would also receive similar permission. A portion of the revenue from chip production will go to the US government, which, according to experts, may violate US law.
This step is also a departure from Trump’s policy, whose administration initially promised to restrict the sale of AI chips to China.