Nvidia and AMD have reached an agreement with the Trump administration to sell AI chips in China, overcoming prior bans. The Trump administration previously blocked the most powerful Nvidia chips but deemed the less powerful H20 chip as an acceptable risk. Jensen Huang's influence helped shape this deal, benefiting U.S. economic interests and potentially generating significant revenue through a percentage of sales to the U.S. Treasury. Trump's demand resulted in a 15% cut of sales from Nvidia and AMD, projected to amount to $3 billion this year.
The companies making the most money from the AI boom are the ones selling the processors, such as Nvidia and AMD.
The Trump administration blocked the sale of Nvidia's most powerful AI chips to China in 2022 but deemed the sale of the less powerful H20 chip an acceptable national security risk.
Nvidia CEO Jensen Huang's charm offensive in Washington, D.C., convinced the Trump administration that U.S. technological goals are best served when AI models run on U.S.-made chips.
Trump's negotiation led to a demand for 15% of Nvidia and AMD's sales from the Chinese market, which could yield as much as $3 billion this year.
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