President Donald Trump announced that Nvidia will be allowed to ship its H200 artificial intelligence chips to "approved customers" in China, provided the U.S. receives a 25% cut of the revenue. This decision came after a positive response from Chinese President Xi Jinping, according to Trump's post on Truth Social. The Department of Commerce is working on the details, and the same revenue-sharing model will extend to other major U.S. chipmakers like AMD and Intel. In August, both Nvidia and AMD agreed to share 15% of their revenue from sales in China with the U.S. government. However, China had previously warned against using Nvidia's H20 chip, designed specifically for the Chinese market. The H200 is a more advanced chip, though it is not Nvidia's flagship product. Following the announcement about the Commerce Department’s approval for sales, Nvidia’s stock initially rose about 2% in after-hours trading before moderating those gains. Nvidia expressed support for Trump's decision, emphasizing that offering the H200 to vetted commercial customers balances competition and job support in the U.S. The article highlights the critical role semiconductors play in the competitive landscape between the U.S. and China, particularly in AI development. Trade tensions have persisted, with China previously imposing export controls on rare-earth minerals essential for high-end chip production, prompting threats of increased tariffs from the Trump administration. A tentative trade truce was established in late October, during which Trump discussed the chip export situation with Xi.