Updated on: December 9, 2025 / 3:00 AM EST / CBS News
President Trump announced Monday he will permit California-based Nvidia to sell its advanced H200 AI chips to “approved customers” in China, a significant easing for the semiconductor company whose processors are widely used for artificial intelligence.
Trump said in a Truth Social post that the U.S. government will take a 25% cut of chip sales to China. He added the decision excludes Nvidia’s more advanced Blackwell system and its soon-to-be-released Rubin system. Trump said he told Chinese President Xi Jinping, who “responded positively,” and that the sales will proceed “under conditions that allow for continued strong National Security.” The Department of Commerce is finalizing details, and Trump said the same approach would be extended to other U.S.-based chipmakers, including AMD and Intel.
A Nvidia spokesperson praised the move as “striking a thoughtful balance that is great for America.” China’s foreign ministry spokesman, speaking at a scheduled Beijing news conference, described bilateral cooperation between the two largest economies as essential and mutually beneficial.
Nvidia designs advanced processors that power AI systems. The company has become the U.S.’s most valuable public firm in the AI boom, with a market capitalization around $4.5 trillion as of Monday. Both the Biden and Trump administrations previously restricted exports of advanced computing chips to certain Chinese entities, citing concerns that the technology could be used for military purposes or accelerate China’s AI development in ways that could harm U.S. interests. Lawmakers from both parties have supported limits on AI chip exports on national security grounds and to preserve U.S. competitive advantage.
Nvidia has lobbied for greater access to the Chinese market. CEO Jensen Huang has argued that export controls have driven China to develop its own AI chip industry and has met with Trump several times, including last week, to discuss the restrictions.
Trump has pursued deals with U.S. chipmakers before. In August, his administration planned to grant export licenses to Nvidia and AMD in exchange for the U.S. government taking a 15% cut of revenue from sales to China. The administration also said over the summer it would take a 10% stake in Intel in exchange for federal grants intended to boost domestic semiconductor manufacturing.