U.S. Greenlights Nvidia's H200 Chip Sales to China with 25% Royalty
Nvidia Cleared to Sell H200 Chips to China with U.S. Oversight
In a development that could recalibrate the global AI chip market, the U.S. Commerce Department has granted Nvidia permission to export its cutting-edge H200 processors to approved Chinese customers. The December 9 decision marks the first major relaxation of AI chip export controls since their implementation earlier this year.
The fine print reveals an unusual arrangement - Washington will collect a 25% royalty on all H200 sales to China. Former President Trump took to social media to announce the deal personally, framing it as "a win for American workers and smart trade policy."
Industry Reactions
Nvidia welcomed the news with measured optimism. "This balanced approach allows us to compete globally while supporting U.S. jobs and manufacturing," said a company spokesperson. The statement subtly acknowledged the delicate geopolitical tightrope chipmakers must walk in today's tech landscape.
The approval follows a little-publicized White House meeting between Nvidia CEO Jensen Huang and Trump last week. While neither side disclosed details at the time, industry analysts now believe Huang successfully argued that complete isolation from China's massive tech market would ultimately harm U.S. competitiveness.
Market Implications
The H200 represents Nvidia's latest breakthrough in AI acceleration hardware, making this decision particularly consequential:
- Supply chain stability: Chinese tech firms can resume access to premium AI training hardware
- Competitive landscape: Maintains U.S. influence over critical technology flows
- Revenue streams: Creates new income for both Nvidia and the U.S. government
"This isn't just about chips," noted tech analyst Melissa Chen. "It's about setting rules of engagement for the next phase of the AI arms race while keeping American firms at the table."
Key Points:
- Approval granted: U.S. clears H200 exports to vetted Chinese customers
- Financial terms: 25% royalty goes to U.S. government on all sales
- Political dimension: Trump personally announced the decision
- Strategic win: Preserves Nvidia's access to crucial Chinese market segment
