Nvidia has announced plans to resume sales of its H20 artificial intelligence (AI) chip in China. This comes just days after CEO Jensen Huang met with U.S. President Donald Trump.
Nvidia Plans to Restart Sales of AI Chips in China Amid Eased Trade Tensions
The H20 chip was previously banned under U.S. export controls aimed at preventing advanced technology from reaching China. These restrictions were based on concerns that AI chips could be used by the Chinese military to develop advanced weapons. Nvidia has said the ban could cost the company as much as $15 billion in lost sales.
Now, the company is filing applications with the U.S. government to sell the H20 chip in China once again. Nvidia stated it expects to receive the necessary licenses soon.
“The U.S. government has assured NVIDIA that licenses will be granted,” the company said in a statement. “We hope to start deliveries shortly.”
In response to the restrictions, Nvidia developed a new version of the H20 chip to meet U.S. regulations. The company has also introduced a second chip, the RTX Pro GPU, designed specifically for the Chinese market. This model is compliant with export rules and is intended for industrial uses like smart factories and logistics.
The White House has not commented on Nvidia’s announcement
CEO Jensen Huang is currently in Beijing to attend a major supply chain expo. Speaking to Chinese state broadcaster CCTV, Huang emphasized the importance of China to Nvidia’s future. “The Chinese market is massive, dynamic, and innovative,” he said. “It is essential for American companies to have a presence here.”
Despite rising competition from Chinese companies like Huawei, Nvidia remains in high demand. Many Chinese tech firms continue to rely on Nvidia’s powerful computing platform, CUDA, for training AI systems.
Nvidia’s sales in China are significant. In its most recent fiscal year, the company earned $17 billion from the Chinese market, which made up 13% of its total revenue.
Recent signs of improved relations between the U.S. and China may help Nvidia. China has relaxed its controls on rare earth exports, and the U.S. has allowed some tech services to return to China.
Still, analysts warn that risks remain. “Even with the H20 chip returning, Chinese firms will likely keep looking for alternatives to secure their supply chains,” said He Hui, research director at Omdia.