NEWS AND ANALYSIS:
The Trump administration will allow artificial intelligence microchip maker Nvidia to sell advanced chips to China, undoing curbs that sought to prevent U.S. technology from helping China’s military buildup.
Nvidia announced on its website Monday that it has been given assurances that new requests for exports to China of its H20 AI chips will be approved.
The announcement followed a meeting at the White House between President Trump and Nvidia CEO Jensen Huang.
Commerce Secretary Howard Lutnick said the lifting of the advanced chip restrictions was a concession made in exchange for China’s announced resumption of sales of rare earth shipments needed by U.S. manufacturers.
In April, the administration announced a crackdown on exports of AI chips produced by Nvidia and Advanced Micro Devices (AMD) over concerns the chips will be used for China’s rapid military buildup, which includes integrating artificial intelligence into its weapons systems.