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NVIDIA’s H20 AI chips are now permitted to be exported to China, following a meeting between CEO Jensen Huang and President Trump. This development was reported by the Financial Times (FT).
NVIDIA’s H20 AI GPUs Finally Secures Licensing Approval from the Commerce Department for Shipments to China
For clarity, NVIDIA’s CEO Jensen Huang announced several weeks ago that the company would sell its H20 AI chips to China after approval from the Commerce Department. However, at that time, the Trump administration had not yet given permission. Now, according to a report by FT, the US has started issuing licenses for these chips to be shipped out to China. This means that NVIDIA can resume its business in the region, which was halted for several months.
The situation arose after Huang met with President Trump just a few days ago. The issuance of licenses is likely an outcome of this meeting. A previous report revealed that H20 AI chips were in a significant backlog due to delays from the Commerce Department. Despite NVIDIA’s assurances about its commitment to China, shipments had not been approved by the US.
Not only did NVIDIA avoid an impending investigation by a Chinese regulator, but the company also addressed concerns that newer shipments might include security backdoors or location tracking mechanisms. NVIDIA stated that it would never allow such features, despite pressures from US lawmakers. Resuming the supply chain in China is now Team Green’s top priority.
With H20 AI chips starting to flow into China, NVIDIA will likely rely on them until year-end before introducing newer solutions like the Blackwell B20 or RTX 6000D GPUs for domestic markets. The company currently has around 900,000 units of H20 AI chips in inventory, which should help cover write-offs from previous quarters.
Now that the export restrictions have been lifted, NVIDIA can focus on its business in China and manage its inventory effectively.
📚 Reading Comprehension Quiz
What was a key factor in allowing NVIDIA's H20 AI chips to be exported to China?
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