In a plot twist that blends geopolitics with corporate deal-making, President Donald Trump has opened the door for Nvidia to resume AI chip sales to China—on one unusual condition: the U.S. government gets a 15% cut of the revenue.
The deal, which could soon extend to Nvidia’s next-gen Blackwell chips, signals a major shift in how Washington handles sensitive tech exports—and it’s sparking both applause and outrage.
From Ban to Bargain
Just months ago, high-end AI chips like the H20 were on the U.S. no-export list to China over national security concerns. Now, after direct talks between Trump and Nvidia CEO Jensen Huang, the Commerce Department is granting export licenses again—so long as the government shares in the profits.
Nvidia will be able to offload what was once “unsellable” inventory in China, while the U.S. Treasury gets a steady new revenue stream.
Blackwell on the Horizon
The H20 is only the start. Trump has hinted that Nvidia’s Blackwell series—its most advanced AI chips yet—could be sold to China too, but in downgraded form. Think of it like selling “export versions” of fighter jets: less capable than the domestic models but still valuable to buyers.
Why Critics Are Fuming
Not everyone sees this as a win-win. Opponents warn that:
- It prioritizes profit over policy, potentially weakening America’s tech control strategy.
- It could skirt the constitutional ban on export taxes.
- It risks giving China access to technology that could be repurposed for military or surveillance uses.
Why Nvidia Is On Board
For Nvidia, this isn’t just about opening a market—it’s about avoiding massive losses. The export ban left the company sitting on billions in unsold H20 chips. Even with the 15% revenue cut, selling to China beats writing off the stock.
Frequently Asked Questions
| Q | A |
|---|---|
| What exactly did Trump approve? | A deal where Nvidia pays the U.S. government 15% of revenue from approved AI chip sales to China. |
| Which chips are included? | Currently the H20 series; Blackwell chips could follow if modified for export. |
| Why is this controversial? | Critics say it undermines export controls and could breach constitutional limits. |
| How does Nvidia benefit? | They regain access to a massive market and unload previously banned inventory. |
| Could this model be applied elsewhere? | Possibly—it could set a precedent for revenue-sharing deals in other sensitive tech sectors. |
Bottom Line
Trump’s “15% chip deal” flips the script on tech trade restrictions, turning them into a profit-sharing arrangement. For Nvidia, it’s a lifeline. For Washington, it’s a bold experiment in monetizing market access. For critics, it’s a risky bet that could reshape the rules of the AI race.
Sources Financial Times
