seniorspectrumnewspaper – NVIDIA announced it will soon resume selling its H20 AI GPU to China after the US government approved the move. The company shared the update in a recent blog post. Earlier in 2024, US officials blocked NVIDIA’s sales of the H20 to China, citing concerns the technology could support China’s military capabilities.
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NVIDIA is actively filing new applications to sell the H20 GPU again. The US government has assured NVIDIA that licenses will be granted soon. NVIDIA expects to begin deliveries in the near future. This approval marks a significant policy reversal after months of export restrictions.
Alongside the H20 GPU, NVIDIA also introduced the RTX Pro GPU, which meets all export compliance requirements for China. This GPU targets smart factories and logistics industries in China, expanding NVIDIA’s market presence beyond AI research. The renewed sales authorization could relieve NVIDIA’s backlog, which currently includes $8 billion in unshipped orders. Industry analysts estimate that NVIDIA could earn up to $5 billion in additional revenue from China sales in 2025 alone. This approval comes as a crucial financial boost for the company.
The US government first blocked sales of NVIDIA’s most powerful AI GPUs, such as the A100 and H200, to China in 2022. In response, NVIDIA developed the A800 and H800 GPUs specifically for the Chinese market. However, the Biden administration banned these chips in 2023, citing similar security concerns.
NVIDIA then introduced the HGX H20 and two other chips designed to comply fully with export controls. Despite these efforts, sales of the HGX H20 were again blocked in April 2024. The recent policy shift now allows NVIDIA to move forward with shipments, signaling a potential easing of US-China technology restrictions. This development highlights ongoing tensions between technology leadership and national security policies. It also reflects the complexities NVIDIA faces balancing compliance with global regulations and serving a major market.
CEO Jensen Huang’s Perspective and Market Implications
NVIDIA CEO Jensen Huang addressed concerns about the military use of its AI chips in China. He stated that China does not need NVIDIA’s chips or American technology to develop its military AI systems. Huang argued that relying on US chips would be unwise for China, as they cannot guarantee stable access due to export restrictions.
He also emphasized that US export bans did not stop China’s AI advancements. Instead, these restrictions allowed Chinese competitors, especially Huawei, to strengthen their technology offerings. Huang’s comments underscore the challenges in using export controls to limit China’s technological growth.
Despite these complexities, the US government’s recent decision to approve H20 GPU sales may ease tensions in the tech supply chain. It also suggests some level of confidence that NVIDIA’s chips will not pose an immediate military threat if properly licensed. Looking ahead, NVIDIA’s ability to resume China sales could stabilize its revenue forecasts and reduce pressure from unfulfilled demand. The company will likely continue working closely with regulators to ensure compliance with evolving export rules.
This situation also highlights the broader geopolitical issues affecting global technology companies. Navigating export regulations while competing in major markets requires constant adaptation and clear communication. Overall, NVIDIA’s renewed sales approval for the H20 GPU in China signals a potential shift toward balancing national security with commercial interests. It remains to be seen how this decision will influence the broader AI hardware landscape and US-China technology relations in the coming years.
