WASHINGTON, Aug 28 (Reuters) - Discussions with the

White House to allow American AI chip company Nvidia ( NVDA ) to

sell a less advanced version of its next-generation advanced GPU

chip to China will take time, Nvidia ( NVDA ) CEO Jensen Huang said on

Thursday.

When asked about White House talks on Blackwell chip sales

to China in a Fox Business News interview, Huang said the

discussions had started. "The conversation will take a while,

but ... President Trump understands that having the world build

AI on the American tech stack helps America win the AI race."

Earlier this month, Trump suggested he might allow Nvidia ( NVDA ) to

sell a scaled-down version of the chip in China, noting that it

would be 30-50% less capable than the regular version.

That comes despite deep-seated fears in Washington that

China could harness U.S. artificial intelligence capabilities to

supercharge its military. China hawks fear allowing even

stripped-down Blackwell chip sales to China could open the door

to Beijing securing more advanced computing power from the U.S.,

even as the two countries battle for technology supremacy.

Reuters in May reported that Nvidia ( NVDA ) was preparing a new chip

for China that was a variant of its most recent state-of-the-art

AI Blackwell chips at a significantly lower cost.