U.S. to Block Nvidia’s Sale of Scaled-Back AI Chips to China

The White House has told others in the federal government it won’t allow Nvidia to sell its latest scaled-down AI chips to China, despite President Donald Trump’s hints over the summer that he might allow the company to do so, according to three people with knowledge of the matter.

The decision is a major blow to the AI chip giant, which has seen its revenue from China shrivel this year as a result of tighter export restrictions imposed by the U.S. government over national security concerns. Though Trump recently made clear he won’t allow the company to sell its most advanced Blackwell AI chips to China—despite briefly opening the door to that idea a few weeks ago—he suggested in August that he might allow a scaled-down version into China that was 30% to 50% less powerful.