Trump Announces That China Will Pay the U.S. ‘$25%’ in Exchange for Advanced AI Chips
AP Photo/Mark Schiefelbein
President Donald Trump announced on Monday night that he will allow chipmaker NVIDIA to sell its advanced H200 AI chips to “approved customers” in China. In return, the president said China will pay the U.S. “$25%.”
Republican and Democratic lawmakers on Capitol Hill – as well as Trump himself – have repeatedly emphasized a dire need to “win” the artificial intelligence race.
“Just like we won the space race, it is imperative that the United States and its allies win this race,” the White House’s AI “action plan” stated in July.
Trump said on Monday that he informed Chinese President Xi Jinping that he was removing his export controls on AI chips to China, specifically, NVIDIA’s H200 graphics processing unit.
“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” the president wrote on Truth Social, before stating the U.S. would receive a “$25% cut, which presumably means 25%. “President Xi responded positively! $25% will be paid to the United States of America. This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers.”
Trump went on to blame the Biden administration for supposedly inferior AI products and promised to protect national security.
“We will protect National Security, create American Jobs, and keep America’s lead in AI,” he continued. “NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST. The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies. MAKE AMERICA GREAT AGAIN!”
An analyst at the Center for Security and Emerging Technology warned that Trump’s chip arrangement actually endangers national security.
“By making it easier for the Chinese to access these high-quality AI chips, you enable China to more easily use and deploy AI system for military applications,” Cole McFaul, a senior research analyst, told BBC. “They want to harness advanced chips for battlefield advantage.”‘
NVIDIA has the largest market cap of any company in the world, valued at $4.52 trillion as of Monday.
