Nvidia to Restart H20 AI Chip Sales to China ‘Soon’ After U.S. Government Provides Assurances

Nvidia announced on Tuesday its intention to resume sales of its H20 general processing units to China, marking a significant achievement for the company in the face of U.S. export restrictions. In April, the U.S. government required Nvidia to obtain a license for selling these chips to China, effectively halting their distribution. The H20 units were specifically designed to circumvent previous export bans targeting Beijing.

In a statement, Nvidia noted that the U.S. government assured the company that licenses would be granted, allowing for a resumption of deliveries soon. CEO Jensen Huang has been actively lobbying against export controls, arguing that these restrictions undermine American technology leadership. He previously indicated that such chip restrictions had drastically reduced Nvidia’s market share in China.

The potential reversal of the U.S. stance followed a meeting last week between Huang and President Donald Trump. Huang reiterated Nvidia’s support for the administration’s job creation and onshoring initiatives, emphasizing the drive for the U.S. to maintain leadership in global AI. Recent discussions between Washington and Beijing resulted in a preliminary trade framework, which included proposals to relax some export controls.

Additionally, Huang introduced a new GPU, the RTX PRO, which he deemed suitable for smart factories and logistics. However, it remains uncertain if this GPU complies with export guidelines for China. Reports have suggested that Nvidia has been working on an alternative AI chip tailored for the Chinese market, which is expected to be less advanced than the H20.

Ray Wang from Futurum Group highlighted this development as a crucial opportunity for Nvidia to strengthen its foothold in China, projecting that the resumption of H20 shipments, alongside newly compliant AI chips, would create fresh growth avenues. Nvidia stocks reflected this optimism, rising 4.5% in after-hours trading. Meanwhile, Huang’s recent trip to China involved discussions with local officials regarding AI advancements and safety measures.

Despite progress in China’s AI chip landscape, Nvidia remains a leader, as local alternatives still lag behind in technology.