**Nvidia’s Export Deal with China: Trump Open to Adjustments on Blackwell Chips**
**Meta Description:** Trump indicates potential flexibility on Nvidia’s Blackwell chip exports to China, contingent on reduced specifications, amid ongoing trade negotiations.
**URL Slug:** nvidia-china-export-deal-trump-blackwell-chips
**Nvidia’s Export Deal with China: Trump Open to Adjustments on Blackwell Chips**
In a recent statement, former US President Donald Trump addressed the current export duties affecting Nvidia’s deal with China, clarifying that these regulations only apply to the older H20 chip, which he referred to as “essentially old.” During a press conference on Monday, Trump expressed a willingness to consider a deal that would allow Nvidia to export its Blackwell chips to China, provided the specifications of these chips could be downgraded. “It’s possible I’d make a deal” on a “somewhat enhanced — in a negative way — Blackwell” processor, he noted, suggesting a reduction in capabilities by 30% to 50%.
Nvidia’s CEO, Jensen Huang, is expected to visit this week to discuss the new Blackwell chip, which could play a significant role in these negotiations. Previously, Nvidia and Advanced Micro Devices Inc. (AMD) had reached an agreement to allocate 15% of their AI chip sales revenues in China to the US government. This unusual arrangement aims to secure export licenses and has raised concerns about its implications for both American companies and the Chinese government.
Trump revealed that he initially sought a 20% revenue share from Nvidia for H20 sales to China but ultimately settled on a 15% cut after negotiations. Nvidia plans to direct 15% of its revenue from H20 AI accelerator sales in China to the US, while AMD will contribute the same percentage from its MI308 revenues. This revenue-sharing agreement underscores Trump’s ongoing strategy to secure financial benefits for the US in exchange for trade concessions.
However, experts warn that such unprecedented arrangements could set a concerning precedent for American companies operating in China and may weaken the US government’s rationale for export controls. In recent days, Trump has made headlines with various statements that have unsettled chipmakers across Silicon Valley and Asia. He even threatened to impose 100% tariffs on imported chips unless companies increased their investments in the US. Nevertheless, these new tariffs are likely to impact only a limited number of companies, as most major chipmakers are already protected by existing investments or trade agreements.
As the situation develops, the implications of Trump’s negotiations with Nvidia and AMD could have lasting effects on the semiconductor industry and US-China trade relations.
**FAQ**
**Q: What are the implications of Trump’s negotiations with Nvidia regarding chip exports to China?**
A: Trump’s negotiations could lead to a significant shift in how American companies approach trade with China, potentially setting a precedent for revenue-sharing agreements and impacting future export controls.
