Trump changed his mind about splitting up NVIDIA and allowed the sale of chips to China after meeting Jensen Huang

US President Donald Trump said he initially considered breaking up NVIDIA but changed his mind after meeting with the company's CEO Jensen Huang. He made the statement during the presentation of the new AI Action Plan in Washington, The Verge reports.

According to Trump, he initially knew nothing about NVIDIA, the world's most valuable technology company.

"I said, "why?" I said, "what percentage of the market does he have?" "Sir, he has 100%," they said," the US president said.

After consulting with advisers, Trump admitted that creating a competitive company even if NVIDIA were split up would be extremely difficult: "I was told that even if the best minds worked together, it would take at least 10 years to catch up with NVIDIA, even if Huang did poorly."

Eventually, Trump personally spoke with the company's CEO and changed his mind: "And then I got to know Jensen, and now I see why," he added.

Jensen Huang convinced the Trump administration to allow the sale of NVIDIA H20 AI chips to China, despite restrictions imposed due to the risks of such technology being used by a rival country. US Commerce Secretary Howard Latnick emphasized that it is a "fourth most powerful product" designed to keep Chinese developers dependent on American technology.

The approval opens up a lucrative new market for NVIDIA and strengthens its position in the field of artificial intelligence. The company had already become the most valuable in history, reaching a capitalization of $4 trillion.

During the Biden administration, the U.S. Department of Justice considered bringing antitrust charges against NVIDIA over its dominance in the AI chip market. But given Trump's new stance of working with the market leader, that is unlikely to happen anytime soon.