Nvidia to resume AI chip sales to China after US green light

US tech giant Nvidia has announced it is to restart sales of its high-end AI chips to China, following assurances from the US government that it will receive the necessary export licenses.

This move marks a significant reversal of a ban imposed by the Trump administration in April, which halted the sale of Nvidia’s H20 chips to Beijing over national security concerns.

The H20 chip was specifically designed by Nvidia for the Chinese market in response to earlier US export restrictions enacted by the Biden administration in 2023. However, its sale was effectively blocked by the more recent Trump-era regulations.

The US government had been keen to prevent cutting-edge AI technology from falling into the hands of the Chinese military, fueling the intense AI race between the two global powers. The US Department of Commerce has not yet commented on the development.

This announcement comes as trade tensions between Washington and Beijing appear to be easing. The two nations recently agreed to a temporary truce in their ongoing tariffs dispute, setting an August 12 deadline for a more comprehensive agreement. In recent weeks, China has relaxed controls on rare earth exports, while the US has lifted restrictions on chip design software firms operating in China.

Nvidia has long considered China a crucial market, with the country consistently ranking among its top global buyers. Nvidia CEO Jensen Huang (pictured above) has actively lobbied both sides for the resumption of H20 chip sales.

Huang reportedly met with President Donald Trump to reaffirm Nvidia’s commitment to job creation and US leadership in AI. He also engaged with Chinese government and industry officials to discuss AI’s potential for productivity gains and safe research advancements.

The news follows Nvidia’s recent milestone of becoming the first company globally to reach a $4 trillion market value, underscoring its pivotal role in the booming AI sector.