Jensen Huang: Discussions with the US Government Regarding the Sale of Blackwell Chips in China, Willing to Take a Commission

According to Reuters, Nvidia CEO Jensen Huang said on Thursday (August 28) that discussions have begun with the White House regarding allowing the company to sell a downgraded version of its next-generation advanced GPU chip in China, but that this would take time.

Jensen Huang was interviewed on Fox Business Channel's "The Claman Countdown" on Thursday. When asked about Nvidia's negotiations with the White House regarding the sale of Blackwell chips in China, Jensen Huang stated that discussions have begun.

"The conversation will take some time, but President Trump understands that having the world build AI based on the American technology stack will help the United States win the AI ​​race," Jensen Huang said.

Earlier this month, Trump indicated that he might allow Nvidia to sell a downgraded version of the Blackwell chip in China, noting that the chip's performance would be 30% to 50% lower than the regular version.

Reuters reported in May that Nvidia was preparing a new chip for China, a significantly lower-cost variant of its latest and most advanced Blackwell AI chip.

Nvidia's third-quarter outlook excluded potential chip sales to China, highlighting the uncertainty facing the company. Nvidia previously reached an agreement with the Trump administration to obtain a license for chip exports, allowing the US government to receive 15% of H20 sales revenue to China. Jensen Huang stated that the company has not yet received any H20 orders from China.

When asked if Nvidia would be forced to agree if Trump demanded a 15% cut of Blackwell chip revenue for China, Jensen Huang hinted that he was open to the idea.

"I don't think it's 'forced,' but ultimately, it's in the global and US interest for us to be able to sell our products in China. So, as long as we can get a license to sell to China, we can accept whatever conditions are required," Jensen Huang said.

He estimates that the Chinese AI market is worth $50 billion to Nvidia. "I hope we can return to the Chinese market and fight for a significant share of this $50 billion market," said Jensen Huang.