The U.S. has authorized Nvidia to resume selling its H20 AI chip in China, potentially generating significant revenue. Previously, Nvidia had to cancel orders following export restrictions from the Trump administration. This decision signifies a shift from earlier strict measures aimed at blocking H20 sales to China. The Chinese government opposed restrictions, citing concerns over global supply chain stability. Companies in China, including DeepSeek and Alibaba, are seeking Nvidia hardware to enhance their AI capabilities in the competitive landscape against firms such as OpenAI.
The US government has permitted Nvidia to resume sales of its H20 AI chip in China, which could generate billions in revenue for the company.
Chinese Foreign Ministry spokesman Lin Jian emphasized that China opposes politicizing trade issues, stating that export restrictions destabilize global industrial supply chains.
Nvidia's H20 shipments are crucial for Chinese companies like DeepSeek and Alibaba, which are aiming to build competitive AI services despite restrictions.
Nvidia designed the H20 and other processors to comply with export restrictions, responding to the evolving regulatory environment surrounding AI technology.
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