Trump: No deal on Nvidia Blackwell GPU sales to China; H20 outdated but still in demand.

Trump: No deal on Nvidia Blackwell GPU sales to China; H20 outdated but still in demand.

Two major US microchip manufacturers, Nvidia and Advanced Micro Devices (AMD), have reached an agreement with the Trump administration to pay 15% of their Chinese chip sales in exchange for export licenses. This unprecedented move allows these companies to resume sending AI-powered microchips to China, following a change in US policy in June [1].

The agreement comes after successful lobbying by Nvidia's CEO Jensen Huang, who convinced the Trump administration to lift the export ban on the H20 and MI308 chips. These chips, produced by Nvidia and AMD respectively, are crucial for powering modern technology. Previously, their export had been restricted due to national security concerns [1].

The Trump administration's decision to allow these sales is part of a strategy to maintain America's technological leadership. By ensuring that China relies on US technology, the administration aims to prevent the development of indigenous Chinese AI capabilities [1].

Nvidia's H20 chip, designed with the Biden administration's export crackdown on advanced AI chips in mind, had been previously banned by President Trump's government in April. However, the recent agreement signals a shift in policy, allowing Nvidia to compete in the global market, including China [1].

Both Nvidia and AMD have not yet commented on the agreement, but Nvidia has stated that it follows the rules set by the US government for its participation in worldwide markets. The company hopes that the export control rules will enable America to compete in China and worldwide, avoiding a repeat of the 5G telecommunication leadership loss [1].

References:
[1] https://www.mkfm.com/news/videos/nvidia-and-amd-to-pay-trump-administration-15-of-chip-revenue-for-export-licences-to-china/