Nvidia has decided to resume exporting its H20 chip to China, marking a strategic shift for the company amid political tensions between Washington and Beijing. Thinking beyond expansion, Nvidia seeks to ensure its global competitiveness. What can we expect from this scenario and crisis between the two countries? Learn everything for more information about the new phase of exportation and the next steps for Nvidia.
Nvidia still betting on the Chinese market
Nvidia NVDA.O will ramp up supply of Chinese-compliant H20 chips in the coming months and look to bring more advanced semiconductors to the world’s second-largest technology market, Chief Executive Jensen Huang said at an event in Beijing. Huang’s remarks came after the world’s most valuable company said it planned to resume sales of the H20 artificial intelligence chip to China, a move U.S. Commerce Secretary Howard Lutnick said was part of negotiations on rare earths.
“H20 was released from its ban, the memory bandwidth is extremely good, for LLMs and other new models it will be excellent. I hope to get more advanced chips into China. Today H20 is still incredibly good, but in coming years, whatever we are allowed to sell to China we will do so.” Huang said
The planned resumption is a reversal of an export restriction imposed in April over U.S. national security concerns. Huang has said that U.S. tech giant Nvidia’s leadership position could slip without sales to China, where developers were being courted by Huawei Technologies HWT.UL with chips produced in China. His comments come days after he met with U.S. President Donald Trump, as Nvidia walks a tightrope between the world’s two biggest economies, both vying for dominance in AI and other cutting-edge technologies. Huang told media on the sidelines of the supply chain expo in Beijing that licenses for Chinese orders would be approved swiftly, noting: “There are many order books already in.”
New phase of exports are monitored by Chinese companies
Sources said internet giants ByteDance and Tencent were in the process of submitting applications. ByteDance denied it was submitting applications while Tencent did not respond to a request for comment. Nvidia has also announced it is developing a new chip for Chinese clients called the RTX Pro GPU, that would also be compliant with U.S. export restrictions. Huang said the new chip would be designed specifically for smart factories and for robot training purposes.
Companies like ByteDance are linked to the acquisition of the chips. Although this information has been denied, sources close to the industry report that the company is interested in Nvidia’s adapted products. H20 is a viable alternative amid the US government’s restrictions. Now we can only wait and see whether this reopening will bring stability or new conflicts between the two countries in the technology field.
New RTX Pro chip focuses on AI acceleration
Nvidia has a new venture: the RTX Pro GPU chip, aimed at specific applications in some factories, especially smart ones, for tasks such as robot training. The project aims to comply with the U.S. Department of Commerce’s export regulations. This innovation could position the company as a strategic partner for the modernization of Chinese industrial sectors.
Nvidia seeks balance between innovation and diplomacy
With the resumption of exports and the launch of new, adapted chips, Nvidia demonstrates its willingness to navigate geopolitical complexities without losing momentum in the artificial intelligence sector. The success of this strategy will depend both on the acceptance of Chinese customers and the company’s ability to maintain the trust of US regulators. In a constantly changing landscape, the balance between technology and diplomacy will be the biggest challenge.
GCN.com/Reuters