U.S. Launches Review of Advanced Nvidia AI Chip Sales to China

The administration of U.S. President Donald Trump has launched a review that could result in the first shipments to China of Nvidia’s second-most powerful artificial intelligence chips, five sources said, making good on Trump’s pledge to allow the controversial sales, Alexandra Alper reported for Reuters.

Trump said this month that he would permit sales of Nvidia’s H200 chips to China, with the U.S. government collecting a 25% fee. (Photo: Lenovo Press)

Trump said this month that he would permit sales of Nvidia’s H200 chips to China, with the U.S. government collecting a 25% fee.

He argued the move would help keep American firms ahead of Chinese chipmakers by reducing demand for domestically produced Chinese chips.

The decision has drawn criticism from China hawks across the U.S. political spectrum, who warn the chips could supercharge Beijing’s military capabilities and erode the U.S. advantage in artificial intelligence.

Questions remain over how quickly Washington will approve the sales and whether Beijing would allow Chinese firms to purchase the Nvidia chips.

The U.S. Commerce Department, which oversees export policy, has sent license applications for the proposed sales to the State, Energy, and Defense departments for review, the sources said, speaking on condition of anonymity because the process is not public.

Those agencies have 30 days to weigh in, according to export regulations.