Trump said Chinese President Xi Jinping "responded positively" to the proposal to let Nvidia sell H200 AI chips on condition that the U.S. gets 25% of revenue.

President Trump will allow technology giant Nvidia to sell its second-best artificial intelligence chips to China. The move reverses years of policy restrictions and could help push China farther along in the AI race.

So enter President Donald Trump, who announced this morning on Truth Social that he plans to issue an executive order with “ONE RULE” to rule them all and limit states from regulating the technology. For more on what the order could look like, Oma Seddiq had details from a draft that was making the rounds in Washington in November.

President Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to 'approved customers' in China.

The announcement ended what has effectively been a ban on AI chip sales to the world's second-largest economy and America's strategic adversary.

Nvidia will be granted permission to export its H200 chips to “approved customers” in China and elsewhere, Trump said, with the U.S. taking a cut of sales.

David Sacks said the Trump administration's effort to restrict state AI regulation won't "force communities to host data centers they don't want."

The debate marks a major flashpoint in Republican politics, stoking tension that could shape the party’s approach to AI in next year’s midterm elections.