The administration of U.S. President Donald Trump plans to review the shipment of Nvidia’s (NVDA) second-most powerful artificial intelligence (A.I.) microchips to China.
Trump said earlier in December that he would allow sales of Nvidia’s H200 processors to China, with the U.S. government collecting a 25% fee.
The move drew criticism from China hawks across the U.S. political spectrum over concerns the microchips will supercharge Beijing’s military and hurt America’s advantage in A.I.
But questions have remained about how quickly the U.S. might approve such sales and whether Beijing would allow Chinese firms to purchase Nvidia’s microchips.
Now, the U.S. Commerce Department, which oversees export policy, is reviewing the potential impacts of the Nvidia chip sales to China.
The U.S. State, Energy and Defense Departments reportedly have 30 days to respond and weigh in on the issue of Nvidia selling advanced A.I. chips to China.
Ultimately though, the final decision on whether to allow the processor sales rests with Trump.
The previous administration of U.S. President Joe Biden had restricted advanced A.I. chip sales to China, citing national security concerns.
NVDA stock has risen 26% this year to trade at $174.14 U.S. per share.
