Nvidia Receives U.S. Approval to Sell H20 AI Chips to China

Nvidia has received approval from the U.S. government to begin shipping its advanced H20 artificial intelligence chips to China, according to company CEO Jensen Huang. The announcement was made in a company blog post and in remarks by Huang during a visit to Beijing, where he is attending a supply chain conference and meeting with Chinese officials.

"The U.S. government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon," the company stated in its blog post. Huang told reporters in Beijing that the U.S. government had approved the company's license filings for the H20 chips, emphasizing the importance of serving the Chinese market, which he described as highly innovative and dynamic.

Nvidia, a major beneficiary of the global adoption of AI technologies, has seen its market value surpass $4 trillion. However, the company and the broader industry have faced challenges due to ongoing trade tensions and export restrictions imposed by the U.S. government over concerns that advanced technology could be used for military purposes in China.

Earlier this year, the Biden administration introduced a new framework for exporting advanced AI chips, seeking to balance national security with economic interests. In April, the White House announced restrictions on sales of Nvidia's H20 and AMD's MI308 chips to China. Nvidia estimated that stricter export controls could cost the company an additional $5.5 billion, prompting Huang and other technology leaders to lobby U.S. policymakers to ease the restrictions.

Nvidia's U.S.-listed shares fell slightly in after-hours trading on Monday, while its shares in Frankfurt rose early Tuesday.