NVIDIA CEO Jensen Huang has dismissed security concerns over the company’s H20 chips, saying they pose no national risk to China and that continued sales would benefit both sides. His remarks follow reports that NVIDIA has slowed development of the H20 after Beijing urged domestic firms to avoid the chip.

Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the U.S. government, President Donald Trump confirmed at a press conference on Monday.

The agreement between the chipmakers and the U.S. government will allow Nvidia and AMD to obtain export licenses to resume sales to China.

However, Huang's extensive lobbying paid off. Nvidia agreed to a 15% revenue-sharing agreement with the U.S. government, which allowed the company to resume sales of the H20 chip to China. While the deal could weigh on Nvidia's margins, it marks the continuation of a potentially lucrative opportunity, but there's more good news.

Nvidia Corporation's AI accelerator sales in China resume, but risks include overvaluation and reliance on clients testing own solutions. Click for our NVDA update.