Nvidia will have to pay the U.S. government 25% of revenue from sales of its new H200 AI chip to Chinese customers, higher than the previous 15% for the H20 chip. The H200 chip is more powerful than the H20 but not as powerful as Blackwell AI chips sold to U.S. and allied nations.

President Trump allows Nvidia to export the H200 AI chips to select Chinese customers, with a 25% revenue cut to the government. The deal may also apply to rivals like AMD and Intel. Nvidia stock rose 2.3% in after-hours trading.

The H200 is Nvidia’s new data center AI chip for China, more powerful than the H20 chip. The U.S. government previously restricted H20 sales to China for national security reasons. Nvidia will pay the U.S. government 25% of revenue from H200 sales to Chinese customers.

Investors in Nvidia may see a boost in revenue and profits with the H200 news. Concerns exist about China gaining access to powerful AI chips, but the deal is positive for Nvidia. The Chinese government’s response to the H200 remains to be seen.

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Read more at Nasdaq: Nvidia Stock Pops After President Trump OKs Sales of New H200 AI Chips to China