NVIDIA avoids a $ 8 billion bullet, thanks to Donald Trump

It is a great victory for the world’s most valuable company in the ongoing technical war. According to the Trump NVIDIA administration granted a license to resume selling specialized artificial intelligence chips to the profitable Chinese market, a decision that follows months of pressure on high risks and direct calls to the White House by CEO Jensen Huang.

This step is a tremendous financial comfort for the giant of artificial intelligence. It allows NVIDIA to avoid a lack of expected revenue worth $ 8 billion for the fiscal year and to re -enter a market that is estimated to have a $ 50 billion in the coming years.

according to Financial timesThe penetration came after Huang White House’s visit on August 6 to meet President Donald Trump. Just two days later, the Ministry of Commerce, which supervises export controls, issued the first NVIDIA licenses to sell H2O chips in China.

High risk background

This decision is the latest chapter in the American -Chinese technical war. The main issue is the fear of using advanced American technology by Beijing to develop advanced military artificial intelligence. To prevent this, the United States imposed strict export controls, as it prohibits the sale of upper -class AI chips to China.

The most powerful NVIDIA processors, such as the Blackwell series, are banned for export to China. In response, NVIDIA is designed with H2O chip, a less powerful version of its advanced technique, specially designed to comply with the original export rules.

However, the Trump administration took a more strict position in April, and banned the sale of even these non -strong H2O chips. This step sent shock waves via NVIDIA. The company was forced to stop shipments, which led to a cost of $ 4.5 billion for inventory obligations and extra purchase. In May, NVIDIA warned investors that restrictions will cost the company an estimated $ 8 billion of revenue for the full fiscal year.

Personal diplomacy power

It took the opposite of this policy months of intense diplomacy and pressure, and its climax in Huang’s personal visits to the White House. It seems that the Magic CEO attack has succeeded, as President Trump’s view has changed dramatically. During the White House summit of artificial intelligence last month, Trump admitted that he initially thought of taking action to combat monopoly against the chips giant before he knew the CEO.

Trump said about Huang during a speech: “I said, look, we will dismantle this man, before I learn the facts of life.” “I said, who is hell? What is his name? What is hell is Nafidia?

The president continued, “Then I got to know Jensen, and now I see the reason,” Huang’s invitation, who was in the audience, to stand. It seems that this meeting was the turning point, as the administration convinced that the protection of NVIDIA’s financial health was very important to maintain America’s leadership in the global artificial intelligence race.

What does this mean for the largest company in the world

For NVIDIA, the news is tremendous comfort. The company, which last month became the first to reach a market value of $ 4 trillion, is now around $ 4.45 trillion. While avoiding the threat of $ 8 billion in revenue now and reopening the Chinese market worth $ 50 billion, investors will closely monitor when NVIDIA reaches its quarterly profits later this month. Another strong report can be easily pushed from artificial intelligence to artificial intelligence to an unprecedented threshold of $ 5 trillion.

NVIDIA and the Ministry of Commerce did not immediately respond to suspension requests.