Nvidia Just Dodged an $8 Billion Bullet, Thanks to Donald Trump

It is a major victory in favor of the world’s most valuable organization in the ongoing technology war. The Trump administration has been licensed to resume its specialized AI chip sale in the profitable Chinese market, which is a decision that followed directly to the White House by the CEO Jensen Huang.

This move is a huge financial relief for the AI giant. It allows Nvidia to avoid revenue deficit of $ 8 billion for fiscal year and re -enter a market that Huang itself assumes and will be $ 50 billion in the coming years.

Accordingly Financial TimesThe Huang’s epoch came after a visit to the White House in Huang to meet President Donald Trump. Just two days later, the Department of Commerce, which oversees export controls, has been reported to have issued the first license to sell H2 and Chips in China for NVIDIA.

Background

This decision is the latest chapter of the ongoing US-China technology war. The main point is that the fear that advanced American technology can be used for the development of sophisticated military AI by Beijing. To prevent it, strict export controls imposed in the United States, preventing the sale of top level AI chip in China.

Nvidia’s most powerful processors, such as the Blackwell Series, have been banned for export of China. As a response, Nvidia cleverly designed H2 and Chip, a less powerful version of its advanced technology, especially prepared to comply with the original export rules.

However, the Trump administration took a stronger position in April, even banned the sale of this D-powered H2 and chips. This move was sent to Shockwave through Nvidia. The company was forced to close the shipment, which caused a $ 4.5 billion charge for additional inventory and obligation to purchase. In May, Nvidia warned investors that these restrictions would spend $ 8 billion in the company’s estimated $ 8 billion for the entire fiscal year.

The power of personal diplomacy

To reverse this policy, a few months of intense diplomacy and lobbying took place, ending on a private trip to the White House in Huang. The CEO’s fascinating aggressive act seems to have changed the attitude of President Trump severely. During the White House AI Summit last month, Trump admitted that he initially considered his CEO against the Chip Giants to take incredible steps before he knew.

“I said, ‘Look, we’ll break this guy,’ before learning the events of life, ‘Trump told Huang about Huang during a speech. “I said, ‘Who is she?

The President continued, “Then I got to know Jensen, and now why I see,” invited Huang to the audience to get up. The meeting seems to be the turning point, the administration believes that protecting Nvidia’s financial health was important to maintain America’s leadership in the Global AI race.

What does it mean for the world’s largest organization

For Nvidia, the news is a great relief. The company, which has reached the market price of the first $ 4 trillion dollar last month, is now about $ 45.45 trillion. The threat of $ 1 billion has now been avoided and the China market of $ 1 billion has reopened, investors will closely monitor its quarterly income later this month. Another powerful report can easily push the AI Titan before $ 5 trillion dollars.

Nvidia refused to comment. The Commerce Department did not immediately respond to any request for comment.