Trump Opens Opportunities For New Generation Nvidia AI Chip Sales In China

JAKARTA - US President Donald Trump, on Monday 11 August, indicated that he might allow Nvidia to sell the next generation of advanced GPU chips with reduced specifications in China. However, there are still concerns from Washington that China could leverage US artificial intelligence (AI) capabilities to strengthen its military.

The move has the potential to open China's access to more advanced computing power than the US, amid technological competition between the two countries. Critics say this move could strengthen China's position in the tech supremacy race.

"Jensen (Huang, CEO of Nvidia) also has a new chip, Blackwell. Blackwell's version is slightly reduced by its ability. In other words, reduce 30% to 50% of its ability," Trump told reporters, referring to the reduction in computing power of the chip. "I think he will meet me again to discuss that, but it will be a version that is not as sophisticated as the original," he added.

Previously, the Trump administration confirmed an unprecedented deal with Nvidia and AMD to provide 15% revenue from the sale of certain advanced chips in China to the US government. This move sparked concerns in Washington, where many are trying to keep China lagging behind in AI technology.

"Even a reduced version of the Nvidia chip, if China buys in large quantities, can be used to build world-class AI supercomputers," said Saif Khan, former director of National Technology and Security at the White House National Security Council under President Joe Biden, who previously restricted US AI chip exports overseas. "This could see China surpass America in AI capabilities."

The most advanced chip Nvidia currently allows to sell to China is H20, which is based on its older architectural platform. Nvidia announced its newest Blackwell platform in early 2024. In May 2025 Nvidia reportedly is preparing a new chip for China, which is a variant of the AI Blackwell chip at a much lower cost.

Nvidia has not disclosed the presence of the chip or its capabilities compared to the products sold in the US. However, the flagship version of Blackwell announced in March 2025 is claimed to be up to 30 times faster than its predecessor.

China's Ministry of Foreign Affairs has not responded to a request for comment regarding Trump's permission to sell this new generation of AI chips.

The H20 Chip Is Called "Insisted"

Trump on Monday defended a deal requiring Nvidia and AMD to hand over 15% of revenue from sales in China, after his administration allowed the export of less sophisticated AI chips, H20, to China last month. Nvidia developed the H20 to comply with restrictions set by the Biden administration before, and began selling the chip to China in 2024.

In April, the Trump administration had stopped selling Nvidia chips to China. However, the company said last month that it had obtained permission to resume deliveries and hoped to start deliveries soon.

"H20 is obsolete," Trump said, arguing that China already has it. "So I said, 'Listen, I want 20% if I agree to this for you, for this country.'"

The deal is very rare for the US and shows Trump's latest intervention in corporate decision making, having previously pressured executives to invest in US manufacturing and demanded the resignation of Intel CEO Lip-Bu Tan because of his relationship with China.

The US Commerce Department has begun issuing licenses for the sale of H20 chips to China, a US official said on Friday, August 8. Another official on Sunday 10 August said Washington did not feel the sale of the H20 chip and the equivalent of endangering national security.

"We follow the rules set by the US government for our participation in the global market. Even though we haven't sent H20 to China for months, we hope export control rules allow America to compete in China and around the world," a Nvidia spokesperson said.

AMD's spokesman said the US had approved their app to export several AI processors to China, but did not directly mention the revenue-sharing deal and stated that the company's business was complying with all US export controls.

China's Ministry of Foreign Affairs on Monday said it had repeatedly stated its position on US chip exports. The ministry previously accused Washington of using technological and trade measures to "deliberately detain and pressure China."