President Trump announced that Nvidia can sell its H200 AI chips to approved customers in China, with the U.S. taking a 25% revenue cut. This decision follows a tentative trade agreement with Chinese President Xi Jinping, aimed at boosting American jobs and manufacturing. Nvidia and AMD previously agreed to share 15% of their revenue from chip sales in China with the U.S. government.

Nvidia now requires Chinese customers to pay in full upfront for its H200 AI chips, with no refunds allowed. Despite political uncertainties, demand remains high, with over 2 million orders placed this year. The company is balancing strong sales with export risks from the U.S. and China.

Nvidia's new RTX6000D chip, designed for the Chinese market, has experienced low demand from major tech firms due to its high cost and underwhelming performance compared to alternatives on the grey market. The chip's launch comes amid increasing scrutiny from Chinese authorities and ongoing U.S.-China trade tensions.

US President Donald Trump and Chinese President Xi Jinping discussed various topics, but notably did not address Nvidia's advanced Blackwell chips, leading to a decline in Nvidia's stock. The geopolitical climate complicates Nvidia's ability to access the Chinese market, despite strong demand for its AI chips. Nvidia's upcoming earnings report will be critical in assessing the recovery of its China business and overall sales outlook.

Nvidia is working on a version of its latest AI chip, Blackwell, tailored specifically for the Chinese market after facing U.S. export restrictions. The company anticipates having samples available by June, as it aims to navigate the limitations imposed on its sales to China, a crucial market for its technology.

Chinese companies have reportedly smuggled approximately $1 billion worth of NVIDIA AI chips into the country over the past three months, despite tightening export controls from the United States. Some firms are openly discussing future availability of these chips, indicating a potential challenge for regulators trying to curb unauthorized imports.

China has implemented new regulations prohibiting its tech companies from purchasing AI chips from Nvidia, a move aimed at controlling access to advanced technology and bolstering domestic chip production. This policy reflects ongoing tensions between China and the U.S. regarding technology and trade.

Chinese authorities have advised tech companies to refrain from purchasing Nvidia's latest RTX Pro 6000D chip, further complicating U.S.-China relations amid ongoing trade tensions. This move is part of a broader strategy targeting Nvidia, which is currently the world's most valuable company.

Megaspeed, a Singaporean data center company linked to Chinese tech firms, is under investigation by U.S. officials for potentially helping China circumvent export restrictions on Nvidia's AI chips. The inquiry raises concerns about Nvidia's oversight of chip distribution and the company's rapid growth amid fears of its technology aiding adversaries.