Nvidia has just dodged an $ 8 billion ball, thanks to Donald Trump

It is a major victory for the most precious company in the world in the current technological war. The Trump administration would have granted NVIDIA a license to resume the sale of its AI chips specializing in the Chinese Lucrative Market, a decision which follows months of high lobbying and direct calls to the White House by CEO Jensen Huang.

This decision is a massive financial relief for the AI giant. It allows Nvidia to avoid an income deficit of $ 8 billion planned for the exercise and to reintegrate a market which, according to Huang itself, is worth 50 billion dollars in the coming years.

According to the Financial Times, the breakthrough came after Huang’s visit to the White House on August 6 to meet President Donald Trump. Two days later, the Commerce Department, which oversees export controls, would have issued the first licenses for Nvidia to sell its H2O fleas in China.

The bottom with high issues

This decision is the last chapter of the American-Chinese technological war. The fundamental question is the fear that American advanced technology can be used by Beijing to develop a sophisticated military AI. To avoid this, the United States has imposed strict export controls, blocking the sale of high-level AI fleas to China.

The most powerful processors in Nvidia, like its Blackwell series, are prohibited for export to China. In response, NVIDIA has intelligently designed the H2O chip, a less powerful version of its advanced technology, specifically suitable to comply with the original export rules.

However, the Trump administration adopted an even more difficult position in April, prohibiting the very sale of these disabled H2O chips. This decision sent shock waves via NVIDIA. The company was forced to stop shipments, which caused a fee of $ 4.5 billion for excess stock and purchase obligations. In May, NVIDIA warned investors that restrictions would cost the company for around $ 8 billion in income for the full financial year.

The power of personal diplomacy

The inversion of this policy has taken months of intense diplomacy and lobbying, leading to Huang’s personal visits to the White House. The CEO’s charm offensive seems to have worked, considerably changing the point of view of President Trump to the company. During a Summit of the White House AI last month, Trump admitted that he had initially planned to take antitrust measures against the chip giant before meeting his CEO.

“I said,” Listen, we are going to break this guy “, before learning the facts of life,” said Trump about Huang during a speech. “I said,” Who devil is? ” What is his name? What is Nvidia? I have never heard of it before. »»

The president continued: “Then I met Jensen, and now I see why”, inviting Huang, who was in the audience, to get up. This meeting seems to have been the turning point, convincing the administration that Nvidia’s financial health protection was crucial to maintaining the example of America in the AI world breed.

What it means for the biggest company in the world

For Nvidia, the news is massive relief. The company, which has become the first to reach a market value of 4 dollars, now oscillates approximately 4.45 billions of dollars. With the threat of income of $ 8 billion now extinguished and the Chinese market of $ 50 billion has reopened, investors will closely monitor when Nvidia will publish its quarterly profits later this month. Another solid relationship could easily push the Titan in front of the unprecedented threshold of 5 billions of dollars.

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