Nvidia’s H20 AI Chip Sale Gets the Nod from U.S. for China Market

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In a major turn of events, U.S. authorities have given the nod to Nvidia, a renowned technology giant, to recommence the sale of its sophisticated H20 artificial intelligence chips in the Chinese market. Nvidia’s CEO, Jensen Huang, made this announcement, highlighting a significant shift in U.S. trade restrictions.

## U.S. Approval for Nvidia’s Chip Sales in China

Jensen Huang, CEO of Nvidia, announced that the U.S. government has granted approval to the tech giant for the export of its H20 AI chips to China. This revelation was made via a company blog post and further discussed during an interview on China’s state-run CGTN television network.

According to the blog post, ‘The U.S. government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon.’ This comes as a significant shift from the earlier restrictions that Nvidia had been facing.

## Nvidia’s Plans to Restart H20 AI Chip Sales

The U.S. approval marks a new chapter in Nvidia’s trade relationships, enabling it to restart sales of its H20 AI accelerator to China. This move follows assurances from U.S. officials that export of the chips would be permitted.

Nvidia’s H20 chip, a model specifically designed to comply with previous trade regulations, was initially banned from Chinese markets in April due to tightened export controls. The U.S. Commerce Department, which supervises semiconductor exports, has yet to comment on this development.

## The H20 AI Chip: A Scaled-down Marvel

The H20 chip is a scaled-down version of Nvidia’s leading AI chips, tailored specifically for the Chinese market in response to U.S. trade restrictions first introduced in 2022. These rules were gradually tightened, affecting successive chip generations — first the H800, and then the H20.

## Nvidia’s Outlook on the Chinese Market

Huang, in his announcement, pointed out the significant presence of AI researchers in China, with the country hosting half of the world’s AI research fraternity. He stressed on the dynamism and innovation prevalent in China, emphasizing the necessity for American companies to compete and serve the Chinese market.

## Conclusion: A New Era for Nvidia in China

The U.S. approval for Nvidia to resume sales of its H20 AI chips in China signifies a new era in trade relationships between the two nations. It also offers a glimmer of hope for other U.S. tech companies facing similar restrictions. As Nvidia gears up to restart deliveries, it will be interesting to see how this move influences the AI landscape in China and beyond. For other tech giants, this development may serve as a beacon, signifying potential relaxation of trade restrictions in the future.

Originally published on https://www.newindianexpress.com/business/2025/Jul/15/nvidias-ceo-says-it-has-us-approval-to-sell-its-h20-ai-computer-chips-in-china

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