President Donald Trump on Monday said Nvidia will be allowed to ship its H200 artificial intelligence chips to "approved customers" in China and elsewhere, on the condition that the U.S. gets a 25% cut.
Chinese President Xi Jinping "responded positively" to the proposal, Trump wrote in a Truth Social post.
The policy "will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers," Trump wrote.
"The Department of Commerce is finalizing the details, and the same approach will apply to AMD , Intel , and other GREAT American Companies," he added in the post.
Both Nvidia and chip rival AMD, short for Advanced Micro Devices , agreed in August to share 15% of the revenue from China chip sales with the U.S. government. But around that same time, China reportedly warned companies against using the H20 AI chip that Nvidia designed especially for the country.
The H200 is a higher-grade chip than the H20, but not the company's top-of-the-line product.
Nvidia shares climbed earlier Monday on news that the Commerce Department was set to approve the China sales, but later pared those gains. The stock rose about 2% after hours.