Trump Suggests Allowing Nvidia to Sell Modified Blackwell AI Chips to China

Washington — Former US President Donald Trump has suggested he may allow Nvidia to sell more advanced artificial intelligence (AI) chips to China than currently permitted, a move that has sparked fresh national security concerns in Washington.

Speaking at a briefing on Monday, Trump said he could “make a deal” for Nvidia to sell a downgraded version of its flagship Blackwell chip in China, with computing power reduced by 30–50%.

“Jensen [Huang, Nvidia CEO] also has the new chip, the Blackwell. A somewhat enhanced-in-a-negative-way Blackwell,” Trump told reporters, hinting at possible approval for an “un-enhanced” model.

⚠ Security Concerns

Critics warn the proposal could still give Beijing access to AI capabilities far beyond current restrictions.

♦ John Moolenaar, Republican chair of the House China committee, said he was worried the US government might take a cut from sales of Nvidia’s H20 chips to China.

♦ Saif Khan, former White House technology and national security director under Joe Biden, cautioned that even scaled-down chips could enable China to build frontier-scale AI supercomputers, potentially leapfrogging the US in AI development.

💰 The Revenue-Sharing Deal

The remarks come after the Trump administration approved an unprecedented agreement requiring Nvidia and AMD to give the US government 15% of revenue from Chinese sales of certain advanced chips — including Nvidia’s H20 and AMD’s MI308 models.

♦ The H20 and MI308 were banned from sale in April under Biden-era export controls.

♦ Nvidia recently secured clearance to resume shipments, expecting deliveries to start soon.

Trump said he initially demanded 20% before settling at 15%, framing it as a win for the US:

“I said, ‘Listen, I want 20% if I’m going to approve this for you, for the country.’”

🇺🇸 US-China Tech Tensions

For years, Washington has limited technology exports that could boost China’s AI and military capabilities. Restrictions target high-performance chips critical to AI model training, advanced computing, and weapons systems.

China’s foreign ministry reiterated its stance Monday, accusing the US of using technology policy to “maliciously contain and suppress China.”

📈 Strategic Implications

♦ Could soften the current AI chip export ban.

♦ Risks accelerating China’s AI and defence development.

♦ Marks Trump’s latest intervention in corporate decision-making, following past pressure on manufacturing investments and executive appointments.