U.S. President Donald Trump hosted Nvidia CEO Jensen Huang at a White House event focused on "Investing in America." During this event, developments surrounding a proposed 15% export tax on Nvidia and Advanced Micro Devices (AMD) were discussed. White House spokesperson Karoline Leavitt indicated that while the current focus is on these two companies, there is potential for the initiative to expand to others in the future.
President Trump confirmed negotiations resulting in approved export licenses for Nvidia's H20 AI chip, specifically intended for the Chinese market, in exchange for a revenue cut for the U.S. government. A similar agreement was made with AMD. While Trump asserted that these export licenses were finalized, legal experts have raised concerns about the complexities involved, particularly in relation to existing laws governing how the government can impose fees on export licenses.
The H20 chip, which has been slowed down to comply with U.S. export regulations, is linked to Nvidia's H100 and H200 models used domestically. Following the Biden administration's imposition of export controls on AI chips in 2023, Nvidia had projected over $8 billion in sales for the H20 chips in a single quarter before the requirement for licensing was announced.
National security is a key factor in the regulation of AI chips, as the U.S. government fears that these technologies could enhance China's military capabilities or support government interests. In response, the Chinese government has reportedly advised local companies against using Nvidia's H20 chips for any projects related to national security.