Nvidia Gains Approval to Resume AI Chip Sales to China Following Trump Meeting
BANGKOK - Nvidia's Chief Executive Officer Jensen Huang has announced that the company has received authorization from the Trump administration to resume sales of its advanced H20 artificial intelligence (AI) chips to China. This significant development was disclosed in a recent blog post and during Huang's appearance on China's state-run CGTN television network.
The CEO emphasized that the U.S. government has assured Nvidia that the necessary licenses will be granted, allowing the company to initiate shipments of its H20 chips shortly. Huang highlighted the importance of maintaining a competitive presence in the Chinese market, stating that half of the world's AI researchers are based in China, contributing to a vibrant and innovative technological landscape.
Huang's recent visit to Beijing coincided with a supply chain conference where he engaged with Chinese officials and attended the China International Supply Chain Expo as an exhibitor. His meetings included discussions with Ren Hongbin, chairman of the China Council for Promotion of International Trade.
Nvidia has significantly benefited from the rapid adoption of AI technologies, becoming the first company to achieve a market valuation exceeding $4 trillion last week. However, the ongoing trade tensions between the United States and China have posed challenges for the tech industry. In recent years, Washington has tightened regulations on the export of advanced technologies to China, citing concerns that civilian technologies could be repurposed for military applications.
The emergence of China's DeepSeek AI chatbot earlier this year has further intensified scrutiny over how advanced chips might be utilized to enhance China's AI capabilities. In January, prior to Trump's second term, the Biden administration unveiled a new framework for exporting cutting-edge computer chips used in AI development, aiming to balance national security concerns with economic interests.
In April, the Biden administration announced restrictions on the sale of Nvidia's H20 and AMD's MI308 chips to China. Nvidia estimated that these tighter controls could result in a loss of approximately $5.5 billion for the company. In response, Huang and other leaders in the tech industry have actively lobbied for the reversal of these restrictions, arguing that such limitations stifle U.S. competitiveness in a critical sector within one of the world's largest technology markets. They have also raised concerns that strict export controls could push other nations to adopt Chinese AI technologies.
Following the announcement of the approval to resume chip sales, Nvidia's shares traded on U.S. markets saw an increase of nearly 5% before the market opened.