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Key Points
Nvidia will pay the U.S. government 25% of revenue from sales of its new H200 AI chip to customers in China. This is an increase from the 15% of revenue previously negotiated for the H20 chip. The announcement follows President Trump’s statement that the U.S. would allow Nvidia to export H200 chips to select Chinese clients.
The H200 chip is more powerful than the H20 but less powerful than Nvidia’s Blackwell AI chips sold to the U.S. and allied nations. Despite previous restrictions, Nvidia’s investors see potential revenue growth from the H200, depending on the Chinese government’s willingness to purchase.
Nvidia (NASDAQ: NVDA) gained 2.3% in after-hours trading following this news, which is framed as beneficial for the company despite ongoing concerns about national security implications.
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