President Donald Trump announced that Nvidia will be allowed to sell AI chips to China, except for its most advanced Blackwell semiconductors, which remain restricted due to national security concerns. Following discussions with Chinese President Xi Jinping and Nvidia’s CEO, the U.S. plans to act as a mediator in chip sales, reflecting ongoing negotiations amid tensions over semiconductor technology exports.
President Donald Trump announced that he will permit Nvidia and China to engage in deals involving AI chips, but he will prohibit the sale of Nvidia’s most advanced semiconductors, specifically the Blackwell chips, to China. This statement came during a 60 Minutes interview aired on CBS, where Trump clarified that while general chip sales could proceed, the cutting-edge Blackwell AI chips would remain restricted from Chinese buyers. He emphasized that Nvidia is the leading American company in AI chip manufacturing and that the U.S. would allow business dealings with China, except for the most advanced technology.
Following a face-to-face meeting with Chinese President Xi Jinping in South Korea, Trump told reporters that although chip discussions took place, there were no specific talks about the Blackwell chips. He mentioned that China would be negotiating directly with Nvidia and other companies regarding chip sales, with the U.S. acting as an arbitrator or referee in these dealings. Trump also indicated that he planned to speak with Nvidia CEO Jensen Wong to further clarify the situation.
Nvidia’s stock responded positively to the news, rising 1.4% in pre-market trading on Monday. The company recently made headlines by becoming the first to surpass a $5 trillion market capitalization, a milestone that followed Trump’s openness to discussing export controls on Nvidia’s advanced chips for China. This development highlights the significant market impact of potential policy changes regarding semiconductor exports.
During the Asia-Pacific Economic Cooperation Summit in South Korea, Nvidia’s CEO expressed optimism about the possibility of selling Blackwell chips to China. He stated that such sales would benefit both America and China by allowing Nvidia to participate in the Chinese market. However, he acknowledged that the final decision on these sales ultimately rests with President Trump, underscoring the political sensitivity surrounding advanced technology exports.
Overall, the situation reflects ongoing tensions and negotiations between the U.S. and China over semiconductor technology, with Nvidia positioned at the center of these discussions. While general AI chip sales may proceed, the U.S. government is maintaining strict controls over the most advanced chips to protect national security interests. The evolving dialogue between political leaders and industry executives will continue to shape the future of semiconductor trade between the two countries.