Trump Permits China to Purchase Nvidia Chips, Except the ‘Most Advanced’
President Donald Trump has stated that he will permit Nvidia to engage in transactions with China regarding artificial intelligence (AI) chips. However, he emphasized that the most advanced semiconductors would not be exported to Beijing.
Key Statements from Trump
In a recent interview with CBS’s “60 Minutes,” Trump discussed the topic of semiconductor sales to China. He confirmed that while he would not allow China to purchase Nvidia’s top-of-the-line AI chips, he is open to allowing Nvidia to negotiate with China on other semiconductor deals. Trump remarked, “We will let them deal with Nvidia, but not in terms of the most advanced,” underscoring the U.S. government’s position on maintaining control over cutting-edge technology.
Nvidia’s Market Reaction
The market responded positively to Trump’s comments. Shares of Nvidia rose by 1.4%, reaching $205.31 in premarket trading on Monday. This follows a significant milestone for Nvidia, which recently became the first company to surpass a $5 trillion market capitalization.
Context of the Discussions
These discussions come in the wake of a dialogue between Trump and Chinese President Xi Jinping, where the U.S. President indicated a willingness to explore export controls for advanced semiconductors, particularly Nvidia’s flagship Blackwell AI chips. This strategic move reflects the ongoing tensions around technology transfers between the U.S. and China.
Implications for Semiconductor Sales
- Trump’s restriction on the most advanced AI chips to China aims to protect U.S. technological superiority.
- Nvidia remains a pivotal player in the global semiconductor market.
- The ongoing discussions highlight the competitive landscape between the U.S. and China in tech innovation.
This stance by the U.S. government illustrates a broader strategy of safeguarding key technologies while maintaining certain business opportunities with Chinese entities.
