Nvidia CEO Jensen Huang confirmed that the company is in discussions with the U.S. government to permit the sale of a less-advanced version of its most powerful AI chip—the Blackwell—to China. These talks are part of a broader effort to ease restrictions and regain market access while maintaining strategic oversight.
Negotiation Dynamics
In a recent interview with Fox Business Network, Huang emphasized that these conversations are ongoing and will take time to finalize, but praised President Trump’s recognition of the importance of American technology in shaping global AI infrastructure.
Meanwhile, Trump has signaled openness to a deal where a “somewhat enhanced—in a negative way” version of Blackwell, with 30–50% reduced performance, could be sold to China. Under similar terms, Nvidia may agree to revenue-sharing mechanisms, akin to a 15% cut previously set for H20 chip exports.
Context: Market and Regulatory Impact
This development comes amid earlier constraints on Nvidia’s China sales—including halted shipments of the H20 chip—due to tightening U.S. export controls. Analysts estimate potential $2–$5 billion in lost quarterly revenue from stalled H20 exports, a gap the Blackwell discussions could help bridge.
Strategic Importance
Securing approval to export a calibrated version of the Blackwell chip would mark a key win for Nvidia, enabling continued presence in a major AI market while adhering to export norms. The negotiations reflect a delicate balance between national security, corporate profitability, and global AI ecosystem control.
