Trump signals support for Nvidia’s limited Blackwell sales to China

Trump hints at softening stance on Nvidia chips

In a surprising twist, President Trump said he’s open to letting Nvidia sell a downgraded version of its advanced Blackwell AI chips to China.

During a press briefing, he proposed allowing exports only if the chip is “enhanced negatively,” suggesting a 30% to 50% reduction in performance.

The statement marks a significant shift in U.S. AI export policy and may open a narrow path for Nvidia to regain access to a key market under tight restrictions.

Trump demands less power in Blackwell chips

Trump didn’t mince words when describing how Nvidia would need to alter its chip. Up to 30 times faster than its predecessor, the Blackwell processor would only be exportable if significantly weakened.

“Take 30% to 50% off of it,” he said. By doing so, theoretically, the chip would remain applicable to Chinese companies but less threatening to U.S. national security interests. It’s a balancing act between economic gains and tech dominance.

Nvidia CEO prepares for more talks with Trump

Trump suggested that Nvidia CEO Jensen Huang is expected to meet him again soon. The pair has already discussed chip exports multiple times.

Huang is pushing for permission to sell a modified Blackwell chip in China. Trump hinted this meeting would focus on an “unenhanced” version of the flagship GPU.

If an agreement is reached, it would mark a new chapter in how Washington handles tech policy with strategic rivals.

Blackwell chips are AI’s most powerful engine

Nvidia’s Blackwell chips are at the heart of the world’s most advanced AI systems. Launched in early 2024, they’re capable of speeds up to 30 times faster than the previous Hopper chips.

These processors are essential for training large language models, powering AI research, and deploying next-gen applications.

They’re too powerful to be exported to China under U.S. regulations, hence the push for a “weakened” version that skirts the ban.

U.S. policy shifts from block to bargain

The Trump administration has pivoted from simply banning exports to striking deals. Under a new arrangement, Nvidia and AMD will pay 15% of revenue from sales of older AI chips in China back to the U.S. government.

Trump framed it as a ‘financial win’ for the U.S., while critics warned it could amount to a ‘tech shakedown’ and may erode the rationale behind national security export controls.

Critics warn China could leapfrog in AI

Experts aren’t buying the idea that weaker chips are harmless. Saif Khan, a former White House tech security director, warned that even downgraded Blackwell chips could help China build “frontier-scale AI supercomputers.”

These systems could compete with U.S. AI capabilities or be repurposed for military use. In short, a 30% weaker chip is still mighty and potentially risky.

The H20 chip set the precedent for deals

Before Blackwell, there was the H20. Nvidia’s H20 chip, built from the older Hopper architecture, was designed to comply with U.S. export restrictions. Exports of the H20 chip were suspended earlier in 2025, before being resumed under the revenue‑sharing deal.

Trump later allowed its export under the 15% revenue-sharing model, referring to the chip as “obsolete.” This deal laid the groundwork for the potential Blackwell compromise and altered the landscape for U.S. AI chip policy.

AMD also joins the revenue-sharing deal

Nvidia isn’t alone. AMD’s MI308 chips are also part of the revenue-sharing agreement. Like Nvidia, AMD must pay the U.S. government 15% of revenue from China-based chip sales.

This move links two of America’s largest chipmakers in an unprecedented export strategy. It also signals the White House’s willingness to manage tech exports through financial leverage rather than outright bans.

National security concerns remain unresolved

While Trump insists these deals don’t threaten U.S. security, others disagree. Harry Kresja from Carnegie Mellon says H20s are not “obsolete” and can perform inference tasks essential to advanced AI.

“We’re directly equipping Beijing with tools to compete,” he warned. The question remains: can the U.S. safely profit from AI exports without undermining its strategic edge?

China sees U.S. policy as containment

China’s foreign ministry has repeatedly accused the U.S. of using technology controls to “maliciously contain and suppress” Chinese progress.

Although Beijing hasn’t officially responded to the Blackwell proposal, it’s clear that tech exports remain a flashpoint in U.S.-China relations.

Any export deal, even a restricted one, will likely be met with diplomatic scrutiny and geopolitical implications.

Trump defends his “America-first” chip deals

Trump remains unapologetic about tying national interest to chip sales. He said he initially demanded a 20% revenue cut from Nvidia for allowing H20 exports, but settled on 15% during negotiations with CEO Jensen Huang.

He emphasized that the payment goes to the country, not to him personally, and framed the deal as a win for American taxpayers.

For Trump, it’s about leveraging U.S. technological dominance into economic returns while still claiming to safeguard national security.

Nvidia’s silence suggests cautious optimism

Nvidia has not commented directly on the Blackwell downgrade proposal or the 15% revenue-sharing deal, but has clarified its position in broader terms.

The company supports working within U.S. export laws and hopes to continue competing in international markets, including China.

Internally, Nvidia is believed to be working on a version of Blackwell for China that complies with evolving restrictions.

The AI chip market is Nvidia’s revenue lifeline

Nvidia derives a significant portion of its revenue from AI chips, and China has historically made up about 13% of its total sales. The Blackwell chips are expected to be the company’s most significant commercial driver in the years ahead.

Without access to China, that opportunity shrinks. Even with downgraded performance, a limited export deal would allow Nvidia to reenter the Chinese market and capitalize on pent-up demand.

U.S. chipmakers must now walk a fine line

Nvidia and AMD are now in a delicate position balancing compliance with U.S. government rules and meeting demand in one of the world’s biggest tech markets.

Any political or technical slip could trigger new restrictions or jeopardize their credibility with either side. They must design chips powerful enough to sell, but not so powerful as to invite national security scrutiny.

Nvidia’s global dominance faces a key test

Nvidia’s Blackwell chip is the crown jewel of AI hardware. But its global future hinges on navigating regulatory and geopolitical turbulence.

While its market cap recently passed $4 trillion, maintaining that lead depends on managing export risk, supply chain pressure, and political diplomacy.

The outcome of the proposed Blackwell deal with China will test Nvidia’s ability to innovate under constraint and remain the global AI leader amid mounting scrutiny from both Washington and Beijing.

Want to see how Nvidia’s playing both sides of the AI power game? The CEO’s latest charm offensive in Beijing says a lot about what’s at stake.

The AI chip export story is far from over

The Blackwell saga is just one episode in a much larger story. As the U.S. and China battle for technological dominance, chips have become both weapons and bargaining chips.

Trump’s strategy may shift again, depending on political winds, industry pressure, or future global events. Meanwhile, companies like Nvidia are adapting in real time.

Whether the outcome favors national security, economic gain, or international cooperation is still to be seen. But one thing’s sure: this story is just beginning.

Want to see just how high the stakes are in this new tech era? Nvidia’s CEO thinks AI won’t just reshape geopolitics, it’ll mint millionaires faster than the internet ever did.

What do you think about Trump allowing China to ship AI chips to support Nvidia? Please share your thoughts and drop a comment.

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This slideshow was made with AI assistance and human editing.