Overview

• The Trump administration has halted plans to impose new export restrictions on Nvidia's H20 AI chips, which are tailored for the Chinese market.
• The decision followed Nvidia CEO Jensen Huang's attendance at a $1 million-per-plate dinner at Mar-a-Lago, where the company promised to invest in U.S.-based AI data centers.
• Nvidia's H20 chips, less advanced than its flagship models, are the most powerful processors the company can legally export to China under current U.S. regulations.
• Chinese companies have reportedly stockpiled $16 billion worth of H20 chips in early 2025, anticipating potential future restrictions.
• The move reflects a broader U.S. trade strategy balancing national security concerns with economic interests, as tariffs on Chinese imports increase to 125%.