Nvidia's Strategic Play: Resuming AI Chip Sales in China Amidst U.S. Export Curbs

Nvidia plans to resume AI chip sales to China, seeking U.S. government approval amidst easing trade tensions. The move, driven by Nvidia's strategic market presence in China, is fueled by high demand despite U.S.-China export curbs and potential $15 billion in revenue. Nvidia introduces new China-compliant AI chip model.

Chinese companies are rushing to buy Nvidia's H20 artificial intelligence chips as the U.S.-based company aims to restart sales to China, following CEO Jensen Huang's engagement with President Trump. Despite U.S. export controls, Nvidia anticipates obtaining necessary licenses soon, potentially alleviating a $15 billion revenue hit.

Although the White House has voiced concerns about military applications of AI, U.S. assurances suggest sales may resume, aiding Nvidia to regain its standing in the Chinese market. This market holds significance for Nvidia due to its vast and innovative AI landscape, with firms like ByteDance and Tencent eager to place orders.

Nvidia, responding to April's export curbs, developed a new AI chip compatible with U.S. regulatory standards for China. The H20 ban led to substantial financial impacts, yet the possibility of renewed sales could boost revenue significantly, highlighting Nvidia's commitment to maintaining its Chinese market trajectory.

(With inputs from agencies.)