Nvidia AI Chip Export to China Approved by US After CEO Meeting with Trump

Nvidia Gets US Approval to Export AI Chips to China

The U.S. Commerce Department has begun issuing licenses for Nvidia to export its H20 chips to China, marking a significant development for the AI company.

Background

This decision follows a reversal of a previous ban on the H20 chip. Nvidia designed this specific processor to comply with current U.S. export rules.

Impact and Concerns

Earlier, Nvidia had anticipated an $8 billion sales hit due to the restrictions. CEO Jensen Huang's meeting with President Trump preceded this new approval.

Details Pending

Key details, such as the number of licenses granted and the total value of shipments, are still unclear. China's Cyberspace Administration (CAC) has also requested documentation regarding potential security risks associated with the H20 chips.

Market Dynamics

China accounts for a significant portion of Nvidia's revenue. The company faces increasing competition from domestic Chinese firms such as Huawei. Other high-end Nvidia AI chips remain restricted under existing U.S. export controls.