Nvidia's Strategic Return to China: Navigating AI Chip Sales

Nvidia plans to restart sales of its H20 AI chip in China, having developed a new model that aligns with U.S. regulatory criteria. The move reflects easing U.S.-China tensions, allowing for renewed access to the Chinese market. Deliveries are anticipated after regulatory approval from the U.S. government.

Nvidia announced it will renew sales of its H20 artificial intelligence chip to China with a new model tailored to regulatory standards. This represents a strategic move amid easing tensions between the U.S. and China, which have facilitated changes in export controls and market access.

The world's leading semiconductor company is filing for U.S. government licenses to proceed with sales. Nvidia expects to secure approvals imminently and commence deliveries thereafter. CEO Jensen Huang will discuss these developments further during a media briefing in Beijing, marking his second visit to China this year.

The H20 chip was initially restricted due to U.S. national security concerns, leading to significant financial impacts on Nvidia. Now, amid diplomatic progress, the company has developed the RTX Pro GPU for the Chinese market, adhering to U.S. export regulations and designed for digital twin AI applications.

(With inputs from agencies.)