The U.S. has approved NVIDIA’s H200 AI chip exports to China, marking a major shift in Washington’s semiconductor policy. The approval comes with a condition: NVIDIA must share 25% of its sales revenue from these exports. The same rule applies to Intel, AMD, and other U.S. chipmakers.

The H200 offers stronger AI training and inference performance than the H20 chips previously permitted for China. This decision could help NVIDIA recover part of its $50 billion China market, where its high-end GPU share fell from 95% to nearly zero due to earlier export bans.

However, the U.S. will not allow exports of NVIDIA’s more advanced Blackwell and upcoming Rubin chips. Members of Trump’s cabinet also oppose selling Blackwell GPUs to China.

NVIDIA CEO Jensen Huang remains unsure whether Chinese customers will accept the H200, saying the company will not sell “downgraded chips.” The move has triggered controversy in the U.S., with critics warning it may strengthen China’s AI capabilities while weakening America’s long-term tech leadership.