The announcement marks a significant shift in US export policy for advanced AI chips, which Joe Biden's administration had heavily restricted over national security concerns about Chinese military applications.

In a post on his Truth Social platform, Trump said he had informed Xi that Washington would permit Nvidia to ship its H200 products to "approved customers in China, and other countries, under conditions that allow for continued strong National Security."

"President Xi responded positively! $25% will be paid to the United States of America," Trump wrote, without providing further details on how the payment mechanism would work.

Trump criticized his predecessor's approach, saying it "forced our Great Companies to spend BILLIONS OF DOLLARS building 'degraded' products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker."

This referred to the previous administration's requirement for chip companies to create modified, less powerful versions specifically for the Chinese market.

These chips had reduced capabilities -- lower processing speeds, for example -- to comply with export control regulations.

The president said his decision aims to "support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers."

Trump emphasized that Nvidia's most advanced chips -- the Blackwell series and forthcoming Rubin processors -- are not included in the agreement and remain available only to US customers.

Under Biden-era restrictions, the H200 and similar advanced chips were blocked from export to China.

First released in the second quarter of 2024, the H200s are roughly 18 months behind the company's state-of-the-art offerings.

The chips -- graphic processing units or GPUs -- are used to train the AI models that are the bedrock of the generative AI revolution launched by the release of ChatGPT in 2022.

The Commerce Department is finalizing implementation details, with Trump saying "the same approach will apply to AMD, Intel, and other GREAT American Companies."

The announcement comes amid trade tensions between Washington and Beijing, as these two compete for dominance in artificial intelligence technology.

Nvidia CEO Jensen Huang has lobbied the White House intensely to reverse the Biden-era policy despite considerable opposition in Washington to giving Chinese companies access to the chips.

arp/dw

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