Key Points:
- Nvidia is in talks to sell its advanced H200 AI chips to Chinese clients.
- The Trump administration tentatively approved sales to TikTok owner ByteDance.
- Discussions are stalled over strict “Know-Your-Customer” security requirements.
- U.S. President Trump supports the deals once security concerns are resolved.
Nvidia is currently locked in negotiations with the U.S. government to figure out how it can sell its powerful artificial intelligence chips to companies in China. According to a report from Reuters on Wednesday, the tech giant is trying to finalize the license terms needed to ship its high-end H200 processors overseas.
The talks come after the Trump administration signaled a willingness to loosen restrictions. About two weeks ago, officials indicated they would grant a license allowing ByteDance, the parent company of TikTok, to purchase the H200 hardware.
However, the deal isn’t finished yet. Nvidia has not accepted specific conditions laid out by the government. The main sticking point involves “Know-Your-Customer” (KYC) rules. Washington insists on these checks to ensure that American technology does not end up in the hands of the Chinese military.
Nvidia says the situation is complicated. The company views itself as a middleman between the regulators and the customers who actually have to follow the rules. A spokesperson for Nvidia explained that they cannot simply accept or reject the terms on their own. They argued that while knowing the customer is important, the rules must work in the real world.
“For American industry to make any sales, the conditions need to be commercially practical,” the spokesperson stated. The company warned that if the U.S. makes the process too difficult or expensive, Chinese buyers will simply stop buying American products and switch to foreign alternatives instead.
Despite the current snag, the outlook for the deal remains positive. President Donald Trump has personally approved the idea of these sales, balancing his desire for American corporate profit with national security.
Observers expect the U.S. will eventually allow both Nvidia and its rival AMD to ship their chips to China, provided they can agree on a way to enforce the security checks without killing the business deal.
