Trump: Agrees to Nvidia Selling a Reduced Version of AI Chips to China

Confirmed to receive a 15% share of Nvidia's China revenue.

Recently, according to media reports, US President Trump said on Monday (August 11) that he was willing to allow Nvidia to sell a scaled-down version of its most advanced AI chip to China.

Trump said he would consider a deal to allow Nvidia to export a scaled-down version of its most advanced Blackwell chip to China if the company could design a less advanced Blackwell chip. "I might make a deal to produce a 'somewhat enhanced — in a negative way — Blackwell' processor," he said in a briefing with reporters. "In other words, a 30% to 50% reduction."

Speaking of Blackwell, Trump also confirmed that he had reached another unusual agreement with Nvidia: allowing the company to sell its less advanced H20 AI chip to China, provided the company remitted 15% of its revenue from these chips to the US government. According to a person familiar with the matter, AMD will hand over the same percentage of MI308 revenue. (Unprecedented: Nvidia and AMD's China chip revenue will be handed over! The US government is under fire for disguised profiteering, potentially adding $2 billion in revenue.)

The revenue-sharing agreement for the H20 chip, and the potential for another future revenue-sharing agreement for Nvidia's Blackwell products, reflect Trump's consistent attempts to secure economic benefits for the United States in exchange for trade concessions.

Trump did not specify when he would negotiate with Nvidia founder and CEO Jensen Huang about the Blackwell chip. He hinted that a meeting could take place soon: "I think he'll come back to me about it, but it will be a large chip without enhancements."