NVIDIA could sell its H200 AI chips to China soon
What's the story
The US government is considering a major policy shift that could allow NVIDIA to sell its H200 artificial intelligence (AI) chips in China. The move comes as the US and China recently reached a bilateral agreement, signaling a thaw in their trade and tech war. The Commerce Department, which oversees US export controls, is currently reviewing its policy on such chip sales.
Security fears
Concerns over advanced AI chips
Despite the potential policy change, there are concerns that sending more advanced AI chips to China could bolster Beijing's military. This fear prompted the previous Joe Biden administration to impose restrictions on such exports, which are now being reconsidered by the current administration. However, these plans are still tentative and could be changed as per the evolving geopolitical landscape.
Market competition
NVIDIA's response to potential policy change
NVIDIA has not directly commented on the review of this policy. However, the company has said that current regulations prevent it from selling a competitive AI data center chip in China. This leaves a huge market open for foreign competitors. The potential lifting of this ban could indicate a more conciliatory approach toward Beijing, after last month's trade and technology truce between US President Donald Trump and Chinese premier Xi Jinping.
Technological edge
H200 chip's advanced capabilities
The H200 chip, launched two years ago, has more high-bandwidth memory than its predecessor, the H100. This allows it to process data faster and is said to be about twice as powerful as the H20 chip. The export status of the H20 chip was not specifically mentioned in the context of a ban being lifted by the Trump administration.