President Donald Trump signaled that he may permit Nvidia to offer China a scaled-down version of its most advanced AI chip.
Addressing the press, Trump said he was open to allowing shipments of Nvidia’s Blackwell processors to China, provided their performance was cut back. “It’s possible I’d make a deal on a somewhat enhanced — in a negative way — Blackwell,” he remarked, indicating the chip’s power could be reduced by “30% to 50%.”
During the briefing, Trump was asked about reports claiming he had reached an agreement with Nvidia and AMD to allow the export of previously restricted chips to China, in return for the U.S. government taking a 15% share of the sales revenue.
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Trump justified the agreement, noting that he had first asked for 20% “for the country” but ultimately accepted Huang’s proposal of 15%. He clarified that the deal was “only for the H20,” which he called “obsolete” and said was something “China already has in a different form.”
He also mentioned that Nvidia CEO Jensen Huang — who has met with him several times to talk about China export limits — “is coming to see me again about that” and reiterated that it would concern “an unenhanced version of the big one.”
Despite limits on the technology, it was allowed to ship, China still accounted for over 13% of the company’s total revenue, making it one of its key markets. Nvidia had developed the H20 which is a toned-down chip with 40% fewer cores to work around export limits. But on April 9, the U.S. government blocked its shipment to China. The move forced Nvidia to take a $4.5 billion hit, wiping out what could have been $7.1 billion in quarterly H20 sales.
That loss also dealt a double-digit blow to the company’s profit margins. Now, Washington D.C. is considering allowing chip sales to resume, though it comes with clear risks.
However, China’s state media has voiced disapproval of the H20 deal, alleging that the chips could carry security risks, including possible backdoors. This suggests, that Beijing may be discouraging its firms from purchasing them. Reports indicate that China is seeking access to more advanced chips as a key condition in any potential trade agreement, signaling that semiconductor technology could remain a central bargaining chip in future negotiations.
Nvidia is currently the world’s valuable company with major clients under its list. If this deal gets a green signal both from Washington, D.C. and China, it will benefit the chip giant and will be able to invest further in the AI landscape.