President Trump announced Monday that he will allow California-based Nvidia to sell its advanced H200 computer chips to "approved customers" in China, a boost to the semiconductor giant whose chips are widely used for artificial intelligence.

The United States government will take a 25% cut of chip sales to China, the president said in a Truth Social post.

The deal does not include Nvidia's more advanced Blackwell system or its soon-to-be-released Rubin system, Mr. Trump said.

He said he informed Chinese President Xi Jinping of his decision, and the Chinese leader "responded positively." The sales will be carried out "under conditions that allow for continued strong National Security," Mr. Trump added.

Details are being finalized by the Department of Commerce, according to Mr. Trump, who said "the same approach" will apply to other U.S.-based chip companies, including AMD and Intel.

A Nvidia spokesperson lauded the president's decision Monday, saying it "strikes a thoughtful balance that is great for America."

At a scheduled news conference on Tuesday in Beijing, a representative of China's foreign ministry reacted to the news by calling bilateral cooperation between the world's two largest economies essential, and mutually beneficial.

Nvidia specializes in designing advanced computer processors that are used to power artificial intelligence. In recent years, the AI boom has turned the firm into the U.S.'s most valuable publicly traded company, with a market capitalization of around $4.5 trillion as of Monday.

The Biden and Trump administrations restricted exports of advanced chip technology to some Chinese entities, warning the chips could be used for military purposes or could help Beijing build up its AI industry in ways that could be contrary to U.S. interests. Members of both parties have supported limits to AI chip exports, both on national security grounds and to give the U.S. artificial intelligence industry an edge over China.

Nvidia has pressed for greater access to the Chinese market. CEO Jensen Huang argues the U.S.'s export rules have backfired by compelling China to build up its own homegrown AI chip industry.

Huang has met with Mr. Trump several times to discuss export controls, including last week.

Meanwhile, Mr. Trump has sought to strike deals with U.S. chipmakers. In August, the Trump administration planned to grant export licenses to Nvidia and AMD in exchange for the U.S. government taking a 15% cut of revenue from sales to China. The administration also said over the summer that the U.S. government would take a 10% stake in Intel in exchange for federal grants to boost semiconductor manufacturing.

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