U.S. President Donald Trump has allowed Nvidia (NVDA) to sell its powerful H200 artificial intelligence (A.I.) microchip to China on the condition that the U.S. government gets a 25% cut.
On social media, Trump wrote that the chip sales to China “will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers.”
Trump added that the “Department of Commerce is finalizing the details, and the same approach will apply to AMD (AMD), Intel (INTC), and other GREAT American Companies.”
Both Nvidia and AMD agreed this August to share 15% of the revenue from China microchip sales with the U.S. government. Now that revenue sharing agreement is going to 25%.
The H200 microchip is a higher-grade and more powerful processor than the H20 chip that Nvidia designed especially for China.
However, the H200 is not Nvidia’s most powerful, top-of-the-line processor.
Microchips and semiconductors, which are key components in nearly every electronic, are at the centre of the A.I. race between the U.S. and China.
They have also caused much of the tension in trade relations between the two superpowers, with each side using companies such as Nvidia as political pawns.
NVDA stock has risen 34% this year to trade at $185.57 U.S. per share.
