U.S. Allows Nvidia To Ship H200 Chips To China The H200 chips will be shipped under conditions which U.S. President Donald Trump says would allow for continued strong national security
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U.S. President Donald Trump has allowed Nvidia to ship a more advanced artificial intelligence chip to China significantly boosting Beijing's tech capabilities. The H200 chips will be shipped under conditions which Trump said would allow for continued strong national security.
This deal to China does not include Nvidia's more advanced Blackwell and Rubin chips.
The U.S., over the past several years, has ramped up restrictions on Chinese access to advanced semiconductors. China already has an edge over the U.S. in electrical power, engineers and other areas.
Trump on Monday said in a post on his Truth Social platform that Nvidia can ship a more advanced chip called the H200 to "approved customers in China and other countries — on condition the U.S. gets a 25 per cent cut. That's up from the 15 per cent rate agreed to in the summer."
Faced with U.S. restrictions, China has sought to reduce its reliance on foreign technology and aims to bolster homegrown tech and reduce reliance on foreign inputs. China went on to build DeepSeek, an AI model, that took the tech world by surprise because of the low operating cost involved.
The NVIDIA H200 GPU supercharges generative AI and high-performance computing (HPC) workloads with game-changing performance and memory capabilities.
"This is a seachange in U.S. policy, and a significant strategic mistake. If the United States sells AI chips to China that are 18 months behind the frontier, it negates the biggest U.S. advantage over China in AI. This new policy helps China much more than it helps the United States," said McGuire on social media platform X.
"This is a massive concession to China, reversing the most significant U.S. technology protection policy vis-a-vis China that has ever been implemented and China's second most significant criticism of U.S. policy, behind only U.S. support for Taiwan. But the way reporting frames it, this is a unilateral U.S. concession. If the tables were turned, China would not give the United States H200s - and if they did, they certainly wouldn't give it to us for free," he added on the post.