With Nvidia’s second-best AI chips headed for China, the US shifts priorities from security to trade

By Peter Draper, Professor, and Executive Director: Institute for International Trade, and Director of the Jean Monnet Centre of Trade and Environment, University of Adelaide
Nathan Howard Gray, Senior Research Fellow, Institute for International Trade, University of Adelaide

This week, US President Donald Trump approved previously banned exports of Nvidia’s powerful H200 artificial intelligence (AI) chips to China.

In return, the US government will receive 25% of the sales revenue, in what has become a hallmark of this administration to take a sales cut of a private company’s revenues.

The H200 is Nvidia’s second-most powerful AI processor. It’s roughly…

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