NVIDIA on Monday (14 July) announced the resale of its H20 artificial intelligence chips in China. This comes after its acceptance by the U.S. government.
In April 2025, the U.S. government put this chip on a restricted list, blocking its sale to China.
This caused Nvidia to delay deliveries and write off $5.5 billion worth of unsold chips. China is one of the key markets of Nvidia, with $17 billion as its revenue last fiscal year, or approximately 13 percent of its total worldwide sales. The rules minimized the chances of Nvidia in the Chinese market.
This change came after Nvidia applied for new export licenses. The U.S. government agreed to issue them, allowing the company to restart shipments of the H20 Chip to customers in China. The process will be handled by the U.S. Commerce Department.
Jensen Huang, of Nvidia, gave a speech in a supply chain forum in Beijing, where he met with Chinese representatives of incumbent industries. The AI inference H20 chip is one of the critical components of large Chinese tech companies such as Tencent, Baidu, and Alibaba.
Along with the H20, Nvidia will introduce a new AI chip, China bearing the name RTX Pro. This chip is perceived to have lower specifications, and it is wider in terms of industry, e.g., manufacturing and logistics. NVIDIA mentions that the chip is fully compliant with the existing export laws.
The relaxation of export control is also linked to bigger changes in U.S.-China tech relations. At the same time, China has eased supplies on a few rare earth commodities, and the U.S. is receptive to greater bilateral trade talks.
Market activity after the news indicated greater confidence among the market investors. NVIDIA shares went up by over 3%, and stocks associated with data centres, which are located in China, also increased. Range Intelligent Computing, a Chinese hardware company, stock price increase by about 9% after Nvidia announced it would restart sales of the H20 chip in China.
Key recent updates:
- NVIDIA expects to begin deliveries of the H20 chip to China soon after receiving export licenses.
- Jensen Huang is currently in Beijing for meetings with industry and government representatives.
- The RTX Pro GPU is set to launch in China shortly.
- While restrictions on some advanced AI chips remain, this move signals a partial easing of U.S. export policies, though future developments will depend on political decisions and trade relations.
Overall, resuming H20 sales is a significant development for Nvidia and Chinese AI firms, restoring a critical supply channel while reflecting ongoing complexities in U.S.–China technology trade.
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