President Donald Trump has signaled he may be open to letting Nvidia (NASDAQ:NVDA) ship a toned-down version of its most advanced Blackwell AI chip to China if the company trims its capabilities by 30% to 50%. The comment comes shortly after Trump confirmed an unusual arrangement already in place for Nvidia’s less-powerful H20 chip, which allows exports to China in exchange for a 15% revenue share paid directly to the US government. Advanced Micro Devices will follow the same formula for its MI308 chip, according to a person familiar with the matter. Nvidia has not commented on the president’s remarks.
The potential deal for Blackwell would mirror Trump’s broader push to secure financial returns for the US in exchange for loosening certain export restrictions a strategy that could influence how American companies negotiate market access in China. While Trump didn’t outline a specific timeline, he suggested Nvidia CEO Jensen Huang could soon meet with him to discuss a negatively enhanced Blackwell variant. If approved, the move could mark a shift in how high-end US chip technology is selectively offered abroad.
Nvidia’s Blackwell chips are the backbone of today’s most powerful AI systems but remain off-limits to China under current US rules. Both Nvidia and AMD (NASDAQ:AMD) have taken revenue hits as tighter controls limited exports to older models on par with domestic Chinese alternatives products that have struggled to gain traction. Nvidia has already said it is developing another China-specific chip and will seek approval to sell it. The company noted that further cutting back its Hopper-based H20 chip is no longer viable, suggesting a modified Blackwell could be the clearest path to regaining momentum in one of the world’s largest AI markets.
This article first appeared on GuruFocus.