
NVIDIA can now sell its AI chips to China again
What's the story
NVIDIA has received approval from the Donald Trump administration to again sell its H20 computer chips, used for artificial intelligence (AI) development, in China. The announcement was made by Jensen Huang, CEO of the tech giant, in a company blog post and separately discussed during an interview with China's state-run CGTN television network. Huang stated that the US government has assured NVIDIA that licenses will be granted.
Statement
Here's what Huang said
Huang highlighted the significance of American firms in China's rapidly evolving AI landscape. He said, "It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here." The NVIDIA CEO's statements come as he attends a supply chain conference in Beijing after meeting with US policymakers.
AI boom
US-China trade rivalry a major concern
NVIDIA has seen huge profits from rapid adoption of AI. However, the US-China trade rivalry has been a major concern for the industry. Washington has been tightening export controls on advanced technology to China over fears that civilian tech could be used for military purposes.
Trade restrictions
Steps taken by the US government
The previous Joe Biden administration had introduced a framework for exporting advanced computer chips used in AI development. The move was aimed at balancing national security concerns with economic interests of the chip producers and other countries. Later, in April this year, the White House announced it would restrict sales of NVIDIA's H20 chips to China, a decision that NVIDIA estimated would cost them around $5.5 billion due to the broader impact of tighter export controls.