Nvidia shares rise 2% in after-hours trading after Trump’s announcement
US has concerns over AI chips aiding China’s military
Trump says same approach will apply to AMD, Intel
WASHINGTON, Dec 8 (Reuters) – The United States will allow Nvidia’s (NVDA.O), opens new tab H200 processors, its second-best artificial intelligence chips, to be exported to China and collect a 25% fee on such sales, U.S. President Donald Trump said on Monday.
The decision appears to settle a U.S. debate about whether Nvidia and rivals should maintain their global lead in AI chips by selling to China or withhold the exports, though Beijing has told companies not to use U.S. technology, leaving it unclear whether Trump’s decision would lead to new sales.
Nvidia (NVDA.O), opens new tab shares rose 2% in after-hours trading after Trump made the announcement on Truth Social, following a 3% rise during the day on a report by Semafor.
Trump said in his post that he had informed President Xi Jinping of China, where Nvidia’s chips are under government scrutiny, about the move and that he “responded positively.”
He said the U.S. Commerce Department was finalizing details of the arrangement and the same approach would apply to other AI chip firms such as Advanced Micro Devices (AMD.O), opens new tab and Intel (INTC.O), opens new tab.
Trump’s post said the fee to be paid to the U.S. government was “$25%”, and a White House official confirmed he meant 25%, higher than the 15% proposed in August.
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