Nvidia says Trump administration will allow AI chip sales to China but…

In a significant development, Nvidia announced on Monday that the Trump administration has reversed its stance and granted approval for the sale of its AI chips tailored for the Chinese market, specifically the H20 model. Although shipments will still require individual approval from the US government, the company expressed optimism in a blog post, stating that the administration has assured them that licenses will be forthcoming. This announcement comes just three months after the US government halted Nvidia’s AI chip sales to China, aiming to curb the nation’s advancements in artificial intelligence technology. Concerns had been raised regarding the potential use of Nvidia’s AI chips by the Chinese military for strategic purposes, including the coordination of attacks and the development of sophisticated weaponry. US Commerce Secretary Howard Lutnick had previously emphasized to Congress the importance of preventing companies like Nvidia from enabling China to utilize American technology against its interests. He reiterated these warnings last month, highlighting that while China remains behind in the AI competition, they are actively trying to catch up with the support of their central government. The decision to lift the ban on Nvidia chips follows a meeting between CEO Jensen Huang and President Trump last Thursday. As reported by the New York Times, Huang has been actively lobbying Washington officials to keep the market open for AI chip sales to China. He has also made multiple visits to China this year and is scheduled for another trip this week, where he will hold a press conference. Before the imposition of the sales restrictions by the Trump administration, Nvidia projected revenues of up to $15 billion from H20 sales within the fiscal year. Addressing concerns about the potential military use of the AI chips during a CNN interview, Huang stated, "We don’t have to worry about it. They simply can’t rely on it…It could be, of course, limited at any time." Following the US restrictions, Nvidia had started to limit the performance of its H100 chip, rebranding it for the Chinese market as the H20. Reports indicate that the H20 model possesses significantly enhanced memory capabilities, making it particularly valuable for AI applications.