NVIDIA can now sell its H200 AI chip in China
What's the story
The US Department of Commerce has approved the export of NVIDIA's advanced H200 chips to China. The decision, first reported by Semafor, allows the tech giant to ship these high-tech chips to select customers in the Asian nation. However, it comes with a 25% revenue cut for the US government on all sales made under this approval, CNBC reported.
Chip evolution
H200 chips: A leap from H20
The newly approved H200 chips are a major upgrade over the H20 chips that NVIDIA had developed for China. However, it is important to note that only those H200 models which are nearly 18 months old will be exported, Semafor reported. This age restriction could be due to technological advancements or regulatory compliance requirements in the chip industry.
Company statement
NVIDIA's response to chip export approval
In response to the Department of Commerce's decision, an NVIDIA spokesperson told TechCrunch, "We applaud President Trump's decision to allow America's chip industry to compete to support high paying jobs and manufacturing in America." The spokesperson added that "offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America."
Security debate
Export decision faces national security concerns
The export of these advanced chips to China has raised national security alarms among US lawmakers. Pete Ricketts, a Republican senator from Nebraska, and Chris Coons, a Democratic senator from Delaware, introduced the SAFE Chips Act on December 4. The bill seeks to block the export of advanced AI chips to China for over two years, and requires the Department of Commerce to deny any such license for 30 months.
Market impact
China's response to US chip export approval
Despite the US government's approval, China's internet regulator, the Cyberspace Administration of China, banned domestic firms from buying NVIDIA's chips in September. This left Chinese companies with no choice but to rely on less advanced domestic chips from Alibaba and Huawei. The move highlights the complex dynamics of international chip trade.