Nvidia has warned officials in the Trump administration that newly imposed export rules for selling certain chips to China are too onerous and risk destroying demand, complicating the company's efforts to serve Chinese customers.
Company representatives have raised objections to requirements placed on potential purchasers of its H200 artificial-intelligence processor, citing examples such as Alibaba and ByteDance as entities subject to the tighter conditions. Nvidia contends that the cumulative compliance burden attached to these sales could significantly reduce buyer interest and make access to the Chinese market more difficult.
Among the concerns Nvidia has flagged is the possible effect the rules would have on a proposal for the U.S. government to take a 25% share of proceeds from certain chip sales. Nvidia indicated that stringent buyer vetting and other restrictions could thwart that revenue plan by suppressing transactions, according to people familiar with the matter.
The H200 entered the market in 2024. Nvidia and U.S. officials distinguish it from the company's more advanced Blackwell and Rubin architectures; the H200 is positioned below those newer families in terms of capability. The Trump administration approved exports of the H200 in hopes of preserving U.S. competitiveness in China without materially enhancing Chinese AI capabilities, a balancing test cited as central to the approval.
Security analysts have warned that, despite being less advanced than the newest Nvidia chips, the H200 still carries sufficient performance to matter in the broader AI technology competition. Within the administration, officials at the State Department and other agencies have argued for stricter controls on such sales. That push for tighter restrictions has been linked to slower approval processes for export requests.
Nvidia's objections underscore the tension between commercial access to a major overseas market and national security-driven limits on technology transfer. The company has emphasized that overly demanding conditions on customers and transactions could reduce allowable sales volumes, creating friction with both its business objectives in China and policy proposals tied to revenue sharing.
Summary and context
- Nvidia told U.S. officials that chip export rules are excessively strict and could destroy demand in China.
- Requirements for buyers of the H200, including Alibaba and ByteDance, are viewed by Nvidia as overly burdensome.
- The company warned the rules might thwart a plan for the government to obtain a 25% cut of sales.