U.S. launches review of advanced Nvidia AI chip sales to China: Reuters

U.S. President Donald Trump's administration has launched a reappraisal that could effect successful the archetypal shipments to China of Nvidia's second-most almighty AI chips, 5 sources said, making bully connected his pledge to let the arguable sales.

Trump this period said helium would allow sales of Nvidia's H200 chips to China, with the U.S. authorities collecting a 25% fee, and that the income would assistance support U.S. firms up of Chinese chipmakers by cutting request for Chinese chips.

The move drew fire from China hawks crossed the U.S. governmental spectrum implicit concerns the chips would supercharge Beijing's subject and erode the U.S. vantage successful artificial intelligence.

But questions person remained astir however rapidly the U.S. mightiness o.k. specified income and whether Beijing would let Chinese firms to acquisition the Nvidia chips.

Reuters reported past week that Nvidia was considering an increase to production of the H200, the contiguous predecessor to its existent flagship Blackwell chips, aft archetypal orders from China outstripped the existent capacity.

The U.S. Commerce Department, which oversees export policy, has sent licence applications for spot shipments to the State, Energy and Defense Departments for review, the sources said connected information of anonymity due to the fact that the process is not public.

Those agencies person 30 days to measurement in, according to export regulations, with the eventual determination falling to Trump if bureau officials disagree. The commencement of the inter-agency licensing reappraisal has not been reported previously.

The Commerce Department and Nvidia did not instantly respond to requests for comment.

A White House spokesperson did not remark connected the review, but said "the Trump medication is committed to ensuring the dominance of the American tech stack – without compromising connected nationalist security."

While the H200 chips are slower than Nvidia's Blackwell chips at galore AI tasks, they stay successful wide usage successful the manufacture and person ne'er been allowed for merchantability successful China.

Trump had previously opened the doorway to sales of a less-advanced mentation of Nvidia's Blackwell chips, its cutting-edge offering, but backed distant from the determination and approved income of the H200 instead.

Led by White House AI czar David Sacks, respective members of the Trump medication present reason that shipping precocious AI chips to China discourages Chinese competitors similar Huawei from redoubling efforts to drawback up with Nvidia and AMD's most-advanced spot designs.

Trump's determination represents a melodramatic reversal from his archetypal term, erstwhile helium drew planetary attraction by cracking down connected Chinese entree to U.S. technology, citing claims that Beijing steals American intelligence spot and harnesses commercially obtained exertion to bolster its military, which Beijing denies.