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 to protect U.S. technological leadership. Nvidia’s CEO expressed optimism about the Chinese market, while the U.S. government plans to oversee future negotiations, balancing economic engagement with national security concerns.
President Donald Trump announced that he will permit Nvidia and China to engage in deals involving AI chips, but he will not allow 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 might proceed, the most cutting-edge technology would remain restricted. He emphasized that Nvidia is the leading company in AI chip manufacturing and that the U.S. would act as a sort of arbitrator in dealings between Nvidia and China.
During the interview, Trump was directly asked if Nvidia would be allowed to sell their most advanced Blackwell chips to China, to which he firmly responded, “No, we won’t do that.” Despite this, he expressed openness to China negotiating with Nvidia on other chip sales. Following a face-to-face meeting with Chinese President Xi Jinping in South Korea, Trump mentioned that while chip discussions took place, there were no talks specifically about Blackwell chips. He indicated that further conversations would involve Nvidia and China, with the U.S. playing a supervisory role.
Nvidia’s CEO Jensen Wong also weighed in on the potential sale of Blackwell chips to China during the Asia-Pacific Economic Cooperation Summit. He expressed optimism about Nvidia’s participation in the Chinese market, stating that it would be beneficial for both America and China. However, he acknowledged that the final decision on such sales rests with President Trump and the U.S. government, highlighting the political sensitivity surrounding advanced semiconductor exports.
The announcement had a positive impact on Nvidia’s stock, with shares rising 1.4% in pre-market trading following the news. Nvidia recently became the first company to surpass a $5 trillion market capitalization, a milestone that coincided with Trump’s indication of willingness to discuss export controls on Nvidia’s advanced chips. This development underscores the significant economic and geopolitical importance of semiconductor technology in U.S.-China relations.
Overall, Trump’s stance reflects a balancing act between maintaining U.S. technological leadership and managing diplomatic and trade relations with China. While allowing some level of chip trade, the U.S. government remains cautious about transferring its most advanced AI semiconductor technology, aiming to protect national security interests while fostering economic engagement. Further discussions between Nvidia, China, and U.S. officials are expected as the situation evolves.