Department of Commerce may approve Nvidia H200 chip exports to China

Nvidia's advanced H200 AI chips might soon be making their way to China, according to reports from Semafor, which cites insider sources. The U.S. Department of Commerce is considering allowing Nvidia to export these chips, which are significantly more sophisticated than the H20 models the company previously released for the Chinese market. However, any H200 chips sent would need to be around 18 months old. An Nvidia representative expressed support for the potential decision, stating, "We applaud President Trump’s decision to allow America’s chip industry to compete to support high-paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America." The timing of this development is critical, as it follows a statement from U.S. Commerce Secretary Howard Lutnick, who indicated that the ultimate decision regarding H200 chip exports rests with President Trump. The potential approval of these exports raises concerns in Congress about national security, as lawmakers have expressed opposition to the idea. In a bipartisan effort, Senators Pete Ricketts (Republican from Nebraska) and Chris Coons (Democrat from Delaware) introduced the SAFE Chips Act on December 4. This legislation aims to prohibit the export of advanced AI chips to China for a period exceeding two years, mandating that the Department of Commerce deny any export licenses for such technologies. While it remains uncertain when a vote on this bill will occur, the push against exporting advanced AI chips has been consistent across party lines. The Trump administration previously imposed strict licensing requirements on chip companies like Nvidia in April, only to later revoke a Biden-era regulation intended to govern AI chip exports. Over the summer, the U.S. government indicated that chip exports to China could be permitted if a 15% revenue cut was provided to the government, effectively using chips as leverage in trade negotiations. However, by that time, the market for American-developed chips in China had already suffered significant setbacks. In September, China's Cyberspace Administration prohibited local companies from purchasing Nvidia's chips, forcing them to rely on less advanced alternatives from domestic firms such as Alibaba and Huawei.