Published: 1:06am, 12 Aug 2025Updated: 4:30am, 12 Aug 2025
US President Donald Trump said on Monday that he had personally negotiated a deal with Nvidia chief executive Jensen Huang, letting the tech giant sell a lower-end chip in China in exchange for part of those sales revenues being paid to the US government.
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Trump did not rule out similar deals involving less-advanced versions of the company’s most high-tech chips, describing Huang as a “brilliant guy”.
The highly unusual deal was first reported on Sunday by the Financial Times.
The arrangement comes amid Washington’s years-long push to restrict Beijing’s access to cutting-edge semiconductors, a policy rooted in concerns that advanced AI processors could bolster China’s military capabilities.
Since 2022, Washington has imposed export controls on such chips, hitting US chipmakers hard — particularly Nvidia, the Santa Clara, California company that is the dominant player in the industry.
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Nvidia CEO Jensen Huang praises China’s AI progress following chip sales approval
Nvidia CEO Jensen Huang praises China’s AI progress following chip sales approval
Speaking at a White House news conference, Trump said that the agreement centred around Nvidia’s H20 chip, which he called “obsolete” but still commercially viable.