President Donald Trump says that he will allow U.S. chipmaker Nvidia to sell advanced artificial intelligence chips to certain customers in China.

BBC News reports that the Nvidia will be permitted to sell its H200 AI chips to a shortlist of approved buyers in China, in exchange for giving the U.S. government a 25% share of revenue from sales. In a post to his Truth Social platform, Trump asserted that the policy will "support American jobs, strengthen U.S. manufacturing, and benefit American taxpayers." In the days ahead, similar deals are also expected to be finalized for other U.S. chipmakers, including AMC and Intel.

In a statement to BBC News, Nvidia praised the decision for striking a "thoughtful balance that is great for America." This comes after Nvidia and AMD agreed to a deal in August to give the U.S. a 15% cut of all sales of high-end AI chips to China. Nvidia CEO Jensen Huang also met with Trump in early December, as part of the chipmaker's broader push to open up trade with customers in China.

The Trump administration has long sought to limit China’s access to advanced chips, deploying a series of export controls aimed at curbing Beijing’s ability to develop cutting-edge AI and military technologies. On December 8, a task force of federal agencies in Texas also announced that it had shut down a China-linked smuggling network that had illegally exported at least $160 million worth of Nvidia H100 and H200 chips to China and Hong Kong. The smuggling operation allegedly falsified shipping paperwork to move the chips, and received more than $50 million in wire transfers originating from China to fund the scheme.