NVIDIA H20 AI Chips Get Approval from Trump Administration for China Export Following Jensen’s White House Visit

NVIDIA’s H20 AI chips have received the much-anticipated export approval to China, following a pivotal meeting between CEO Jensen Huang and former President Trump. This development marks a significant shift in the company’s operations concerning the Chinese market.

NVIDIA’s H20 AI Chips: Export Approval Finally Granted for China

Several weeks prior, Huang announced plans for the sale of NVIDIA’s H20 AI chips in China, pending clearance from the U. S.Commerce Department. At that time, the administration had yet to provide its endorsement. Recent reports from the Financial Times indicate that the U. S.government has begun issuing licenses, allowing these chips to be shipped to China. This decision will enable NVIDIA to resume its business operations in the region, which had faced a standstill for several months due to regulatory delays.

The timing of this licensing approval appears to be connected to the recent dialogue between Huang and Trump. Previously, NVIDIA had been grappling with a significant backlog of H20 AI chips caused by delays from the Commerce Department. Despite the company’s assurances of its ongoing commitment to China, no shipments had been authorized until now.

Additionally, NVIDIA has successfully navigated a potential obstacle regarding exports—an investigation initiated by Chinese regulators. Concerns were raised about the potential inclusion of security backdoors and location tracking features in the newer shipments. However, NVIDIA has strongly denied these claims, reaffirming its commitment to cyber security and the absence of such vulnerabilities in its products, despite pressure from U. S.lawmakers. Restoring the supply chain in China continues to be a critical priority for NVIDIA.

With shipments of H20 AI chips now set to flow into China, NVIDIA is likely to depend on this stock until the end of the year. The company is preparing to launch newer products, including the Blackwell B20 and RTX 6000D GPUs, for the domestic market shortly thereafter. Currently, NVIDIA holds an inventory of approximately 900, 000 units of H20 AI chips, which should help mitigate losses incurred during prior quarters.

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