U.S. Restricts Nvidia's AI Chip Sales to China Amid Security Concerns

The U.S. has halted the sale of Nvidia's H200 AI chips to China due to national security concerns. The chips have not been sold yet and are being held back by export controls. The decision has sparked controversy amidst fears of misuse by Chinese military forces.

None of Nvidia's second-generation AI chips, known as the H200, have reached Chinese buyers, according to a U.S. Commerce Department official. Assistant Secretary for Export Enforcement David Peters confirmed the absence of sales during a House Foreign Affairs Committee hearing.

The Chinese Embassy in Washington and Nvidia have not provided comments. Last month, the Trump administration authorized sales of Nvidia's H200 chips to China, under specific conditions. This decision was criticized by U.S. lawmakers.

Critics argue the chips could bolster China's military capabilities, threatening U.S. AI leadership. Shipments remain paused due to strict export controls. Amidst this, illegal smuggling of chips into China has been reported and is a top priority for U.S. enforcement agencies.