Trump Signals Conditional Approval for Nvidia’s Scaled-Down Blackwell AI Chip Sales to China
President Trump considers allowing Nvidia to sell a reduced-performance version of its advanced Blackwell AI chips to China under strict conditions, continuing a unique revenue-sharing export deal.
US President Donald Trump has indicated a potential shift in US export policy by signaling openness to allowing Nvidia to sell a reduced-performance version of its latest Blackwell AI chips to China, conditioned on significant restrictions. According to Trump, Nvidia could export an “unenhanced” or scaled-down Blackwell processor, with between 30% to 50% of its computing power disabled, ensuring the chip does not violate existing US export controls designed to prevent the transfer of advanced AI battlefield and surveillance technology to China.
This proposal builds on an existing, unusual revenue-sharing framework where Nvidia and AMD pay the US government 15% of revenue from semiconductor sales to China in exchange for export licenses, including for Nvidia’s less advanced H20 AI chip. This H20 chip, which has already been permitted for sale in China, serves as a precedent and is considered by Trump as “obsolete” relative to Blackwell, though experts affirm it remains sophisticated. Nvidia CEO Jensen Huang is reportedly engaged in dialogue with the Trump administration on the terms of this scaled-down Blackwell chip export.
The Blackwell chip represents Nvidia’s most powerful AI hardware platform, capable of accelerating AI models up to 30 times faster than previous generations. Under the Biden administration, these top-tier processors were off-limits for export to China due to national security concerns about their use in military and surveillance applications. Trump’s suggestion of allowing a reduced-performance variant aims to strike a balance between restricting China’s access to cutting-edge technology and enabling continued US commercial engagement with the Chinese market.
Critics warn that even a downgraded Blackwell chip could empower China to build advanced AI supercomputers, potentially helping it leapfrog US AI capabilities in critical areas. This concern underscores the broader geopolitical tension shaping technology export policies between Washington and Beijing. Nevertheless, proponents argue that revenue-sharing ensures the US financially benefits from these sales, providing leverage in a complex technological rivalry.
Trump likened the approach to military hardware sales where the US sometimes offers less advanced versions of fighter jets to certain countries at discounted prices, suggesting a pragmatic precedent for tech exports. He also emphasized that the final deal would likely require higher fees or stricter terms since the Blackwell chip represents the forefront of AI hardware innovation.
This nuanced stance from the Trump administration reflects ongoing efforts to balance national security with economic interests in the high-stakes arena of AI technology transfer. The coming months should clarify the precise terms of these chip exports and their impact on the competitive dynamics of global AI development.
