Trump Allows Nvidia AI Chip Sales China With 15% Revenue Cut

President Donald Trump has negotiated with Nvidia CEO Jensen Huang to allow the sale of Nvidia's older H20 AI chip to China under export control licenses, with Nvidia agreeing to pay the U.S. government a 15% cut of revenue from these sales. Trump initially demanded a 20% cut but reduced it to 15% after discussions with Huang. He described the H20 chip as "obsolete" and noted that China already possesses similar technology. Trump made clear that Nvidia's latest Blackwell chip, which he called "super-duper advanced" and unmatched globally, would not be approved for export to China unless its performance is significantly downgraded by 30% to 50%. The administration's export controls aim to prevent China from advancing its AI capabilities beyond the U.S., a national security concern. Nvidia continues to engage with the administration on these terms as part of a broader effort to balance competition and security in AI chip exports to China.