Washington (TDI): Nvidia CEO Jensen Huang says that the Tech giant has won approval from the Trump administration to lift restrictions on H20 artificial-intelligence computer chip sales to China.
This statement came in the company’s blog post days after the Nvidia chief met the US President Donald Trump. This marks a reversal in Trump administration’s policy and a big moment for Nvidia. The company said that the US government has assured granting licenses and therefore Nvidia hopes to start deliveries soon.
Nvidia’s AI chips are among the items on the key focus of US export controls designed to keep the most technologically advanced chips out of Chinese reach primarily for national security concerns. Nevertheless, the Company said these restrictions would cut its revenue by $15 billion.
China presents a massive market for Nvidia chips. The country generated $17 billion in revenue for Nvidia in the last fiscal year, accounting for 13% of the company’s total sales as per the company’s latest annual report. For this reason, Huang has consistently stressed the China’s market value for Nvidia’s growth.
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In April, the US Commerce Department imposed export restrictions that halted H20 chip shipments to China. Now, a green light from Washington is being seen as a diplomatic gesture amid broader US-China trade discussions.
Chinese negotiators have made access to advanced chips a priority. At the same time, US policymakers raised concerns that chips could still be used by China for military purposes.Â
Chinese Tech giant Huawei has given increased competition to US tech giant Nvidia in technology. Despite that, Chinese companies, including big tech firms, look for Nvidia chips due to the company’s computing platform known as CUDA.Â
This move to resume H20 chips sales to China also comes amid easing tensions between Washington and Beijing, with China relaxing controls on rare earth minerals.Â
