By
Kelsey Vlamis
New
Every time Kelsey publishes a story, you’ll get an alert straight to your inbox!
By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider’s
Terms of Service and
Privacy Policy.
Follow Kelsey Vlamis
- President Donald Trump announced his approval for Nvidia to sell H200 chips to China.
- Trump said the US would get a cut of the sales.
- Nvidia's stock was up following the announcement.
Nvidia just scored a win from President Donald Trump.
In a post on Truth Social on Monday, Trump said he told Chinese leader Xi Jinping that the US would allow Nvidia to sell its H200 chips to "approved customers" in China.
"This policy will support American Jobs, strengthen US Manufacturing, and benefit American Taxpayers," Trump said in the post.
Trump said, "$25% will be paid to the United States of America." He has previously proposed having the US take a cut of chip sales to China.
Nvidia's stock was up in after-hours trading following Trump's announcement.
"We applaud President Trump's decision to allow America's chip industry to compete to support high paying jobs and manufacturing in America," a spokesperson for Nvidia said in a statement to Business Insider. "Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America."
Nvidia's powerful H200 chips have been in high demand as AI models become more powerful.
While Nvidia was already able to sell some of its other chips to China, the US government has limited its ability to sell some powerful chips due to national security concerns. Sales of its H20 chips to China during Q3 were "insignificant," CFO Colette Kress said on its latest earnings call.
"While we were disappointed in the current state that prevents us from shipping more competitive data center compute products to China, we are committed to continued engagement with the US and China governments and will continue to advocate for America's ability to compete around the world," Kress said during the Q3 earnings call.
Nvidia CEO Jensen Huang met with Trump last week to discuss export controls on chips.
"I've said repeatedly that we support export control, that we should ensure that American companies have the best and the most and first," Huang told reporters last week.
Nvidia stock was up roughly 2% after hours.
