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U.S. President Donald Trump confirmed Monday that Nvidia has agreed to hand over 15% of its sales from Chinese H20 chips to the U.S. government in exchange for export licenses. Speaking at the White House, Trump said the arrangement came after negotiations with Nvidia CEO Jensen Huang, who persuaded him to lower his initial demand of 20%.
The deal focuses on Nvidia’s H20 chip, a high-performance GPU that has drawn attention amid Washington’s tight controls on advanced technology exports to China. The payment agreement will allow Nvidia to continue selling the chip in the Chinese market while staying within U.S. regulatory limits.
Trump also addressed the possibility of exporting Nvidia’s next-generation Blackwell chip to China. “Jensen also has the new chip, the Blackwell,” Trump said. “I wouldn’t make a deal with that, although it’s possible.” His remarks suggest he is leaving the door open to approving sales of a modified, less advanced version of the Blackwell chip, though he initially signaled reluctance.
The announcement comes as the U.S. continues to manage a delicate balance between maintaining technological leadership and regulating sensitive exports to China. Nvidia, whose GPUs are essential for artificial intelligence and data center applications, has been at the center of these trade tensions, with the H20 designed specifically to comply with earlier export restrictions.
For Nvidia, the arrangement offers a path to keep a foothold in the lucrative Chinese market, while for Washington, it represents both a check on advanced technology transfers and a direct revenue stream from one of the world’s most valuable chipmakers.