President Donald Trump’s The board is reportedly considering the possibility of granting permission Nvidia Corp. (NASDAQ:NVDA) to trade its H200 artificial intelligence chips with China.
What happened: According to a report, the Trump administration’s internal discussions indicate a significant departure from its previous position on semiconductor export controls. However, this possible move remains subject to debate, and no final decision has been made yet.
The ongoing discussions are seen as a potential victory for Nvidia’s CEO. Jensen Huangwho has advocated a relaxation of export controls.
Following news of these discussions, Nvidia shares rallied and hit a session high on Friday, gaining up to 2% at $184.29. reports Bloomberg.
Despite the ongoing discussions, Nvidia stated that current regulations are a barrier to offering a data center product in China, leaving the market open to fast-growing foreign competitors.
Also read: Jensen Huang and Nvidia: betting big on AI, but for how long?
The proposed sale of H200 chips to China could mark a substantial easing of US trade restrictions aimed at limiting China’s advances in artificial intelligence. However, the move is expected to meet resistance from China hawks in Washington.
So far, representatives from the White House and the Commerce Department, which regulates exports, have not commented on the H200 discussions.
Why it’s important: The proposed sale of Nvidia’s H200 AI chips to China could have far-reaching consequences. It could potentially open a new market for Nvidia, increasing sales and profits. However, it could also escalate tensions between the US and China, given the ongoing trade war and the sensitive nature of AI technology.
The move could also face pushback from lawmakers and other stakeholders concerned about China’s growing prowess in AI.
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