Donald Trump has indicated that Nvidia can sell more advanced chips in China than is currently allowed.

During a Monday briefing, Trump addressed the recent development, revealing his groundbreaking agreements with NVIDIA and AMD. He has authorized an export license allowing the sale of previously restricted chips to China, with the US government receiving 15% of the sales revenue. The US president defended the deal after analysts labeled it as potentially resembling “shakedown” payments or unconstitutional export taxes. He expressed hope for further negotiations regarding a more advanced Nvidia chip.

Trump mentioned that Nvidia’s latest chip, Blackwell, would not be available for trade, but he is considering trading “a slightly negatively impacted version of Blackwell,” which could see a downgrade of 30-50%.

“I believe he’ll be back to discuss it, but it will be a significant yet unenhanced version,” he remarked, referring to Nvidia’s CEO Jensen Huang, who has had multiple discussions with Trump about China’s export limits.

Huang has yet to comment on the revenue-sharing agreement pertaining to the sales of Nvidia’s H20 chips and AMD’s Mi308 chips in China.

The H20 and Mi308 chips were prohibited from being sold to China in April, even though the low-power H20 was specially designed to meet the restrictions set by the Biden administration. Nvidia previously stated last month that they hoped to receive clearance to resume shipments soon.

Nvidia’s impact is a major driver of the AI boom, garnering significant interest from both China and the US, which has led to heightened scrutiny among analysts in Washington and concerns from Chinese officials.

“I’m worried about reports indicating the US government might take revenue from sales of chips akin to advanced H20 sales,” he told the Financial Times.

Trump justified the agreement on Monday: “I stated, ‘Listen, I want 20% if I approve this for you,'” emphasizing that he hasn’t received any personal money from the deal. He suggested that Huang provided 15% as part of the agreement.

“I permitted him only for the H20,” Trump clarified.

He referred to the H20 as an “outdated” chip that is “already in a different form for China.”

However, Harry Cleja, research director at the Washington office of the Carnegie Mellon Institute of Strategic Technology, labeled the H20 as a “second tier” AI chip.

“The H20 is not the premier training chip available, but the type of computing dominating AI tasks today—particularly the ‘inference’ model and ‘agent’ products—are what the field is focused on,” Kresja told the Guardian, referring to systems employing advanced inference to autonomously resolve complex issues.

“Lifting H20 export restrictions undoubtedly provides Beijing with the necessary tools to compete in the AI realm.”

The US government has been attempting for several years to defend national security, especially concerning artificial intelligence development and the provision of technology that could be weaponized.

China’s Foreign Ministry remarked on Monday that the country has consistently articulated its stance on US chip exports, accusing Washington of utilizing technology and trade measures to “maliciously suppress and hinder China.”

Revenue-sharing contracts are quite rare in the US, reflecting Trump’s latest interference in corporate decisions after pressuring executives to reinvest in American manufacturing. He has requested the resignation of Intel’s new CEO, Lip-Bu Tan, regarding its connections with Chinese companies.

Trump has also suggested imposing 100% tariffs on the global semiconductor market, exempting businesses that commit to investing in the US.

Taiwan’s TSMC, a leading semiconductor manufacturer, announced plans in April to expand its US operations through a $100 million investment. However, foreign investments of this magnitude require government approval from Taiwan.

The Guardian confirmed that TSMC has yet to apply for this approval. The company has not responded to requests for comment.