Nvidia Resumes H20 AI Chip Sales to China After U.S. Approval
In a significant reversal of policy, Nvidia announced it will resume sales of its H20 AI chips to China, after receiving new export licenses from the U.S. government. The decision is expected to unlock up to $10.5 billion in lost revenue for 2025, marking a critical turning point in the global AI chip race.
Image Source: Nvidia
The U.S.-China Chip Tug-of-War
Since 2022, Washington has restricted high-end semiconductor exports to China, citing national security and military concerns. Nvidia’s most powerful chips—like the H100 and A100—were among those banned. In response, Nvidia developed a scaled-down H20 chip tailored to meet export control criteria, but it too faced licensing delays.
That has now changed.
“We’ve received clearance to fulfill commercial AI chip orders to non-military Chinese clients,” said Nvidia spokesperson Alicia Miller. “This allows us to better serve our partners in Asia and continue supporting global innovation.”
Why the H20 Matters
The H20 chip, part of Nvidia’s Hopper architecture, is a performance-optimized model designed specifically for data centers and AI workloads—such as:
- Natural language processing
- Computer vision
- Foundation model training and inference
Though slightly downgraded from the flagship H100, the H20 remains significantly more powerful than most chips available in China’s domestic market, giving cloud providers like Alibaba, Tencent, and Baidu renewed access to top-tier AI hardware.
Also Read: Nvidia Becomes First Company to Hit $4 Trillion Valuation — AI Chip Demand Rewrites History
Economic Implications
Analysts estimate Nvidia could now regain up to $10.5 billion in missed revenue from delayed or canceled Chinese orders—representing over 12% of its projected annual sales. Investors responded swiftly, with Nvidia’s shares ticking up 4.1% following the news.
The move may also soften tensions with Chinese clients, who had been pivoting to Huawei and other domestic alternatives amid the export uncertainty.
Strategic Balancing Act
While Nvidia’s approval marks a win for Silicon Valley, it also underscores Washington’s new, more nuanced strategy: limiting military-grade capabilities while allowing commercial trade in specific cases. The chips will be restricted to non-defense use, with ongoing end-user monitoring by the U.S. Commerce Department.
This recalibration could redefine tech diplomacy in the AI era—balancing national security, market access, and global innovation.
Share
You may also like
ABB Reports Record-Breaking Q2 Order Intake, Fueled by AI Data Center Boom
Summary
Read Full
open_in_newSwiss multinational ABB posted its highest-ever quarterly order intake in Q2 2025, powered by growing global demand for AI-driven data center infrastructure. This milestone underscores accelerating tech infrastructure investments and ABB’s pivotal role in next-gen digital and industrial transformation.
Nvidia Becomes First Company to Hit $4 Trillion Valuation — AI Chip Demand Rewrites History
Summary
Read Full
open_in_newNvidia has officially shattered records by becoming the first publicly traded company to reach a $4 trillion market valuation, marking a watershed moment in both tech and financial history. This milestone is fueled by unprecedented demand for its AI chips, as industries across the globe race to adopt generative AI, autonomous systems, and next-gen cloud computing.
Samsung Electronics Warns of 56% Profit Drop as U.S. AI Chip Export Curbs Hit China Sales
Summary
Read Full
open_in_newSamsung Electronics has issued a stark warning: its Q2 2025 operating profit is expected to plunge by 56% year-on-year, as U.S. export restrictions on AI chips to China ripple through the global tech landscape. This sharp decline underscores the growing vulnerability of the semiconductor sector to geopolitical tensions.
Nvidia Briefly Hits $3.92 Trillion Valuation — Poised to Become the Most Valuable Company in History
Summary
Read Full
open_in_newNvidia reached a historic milestone this week, briefly crossing a $3.92 trillion market valuation, making it a contender for the title of the most valuable company ever. This surge is fueled by insatiable global demand for its AI chips, positioning Nvidia as the undisputed leader in the artificial intelligence hardware race.
Summary
Read Full
open_in_newMicrosoft has initiated a second round of layoffs in 2025, cutting 9,000 jobs globally, primarily in middle management and operations roles. The move is part of the tech giant’s broader strategy to prioritize AI-driven transformation and organizational agility.
Intel’s Strategy Chief Exits as Company Prepares for Massive Layoffs and Division Shutdowns
Summary
Read Full
open_in_newSafroadu Yeboah-Amankwah, Intel’s Chief Strategy Officer, is stepping down today, June 30, 2025—just weeks before the company initiates a sweeping 20% global workforce reduction starting July 15. The layoffs are part of a broader restructuring strategy that includes shutting down Intel’s automotive-chip division, a surprising pivot amid growing EV and AI integration.
Jeff Bezos Marries Lauren Sánchez in $50M Venice Wedding with Hollywood’s Elite in Attendance
Summary
Read Full
open_in_newJeff Bezos, Amazon founder and one of the world’s richest men, married Lauren Sánchez this week in Venice, Italy, during a $50 million, three-day celebration that captivated tabloids and tech-watchers alike. With Lady Gaga performing, and a guest list including Oprah Winfrey, Leonardo DiCaprio, and Kim Kardashian, the wedding blended luxury, spectacle, and star power in true billionaire fashion.
Post a comment
Comments
Most Popular
Categories
