US to Allow Nvidia to Ship H200 AI Chips to China Amid National Security Concerns
The US Commerce Department is finalizing details to permit Nvidia to sell its H200 AI chips to approved customers in China and other countries, signaling a relaxation of Biden-era export restrictions. The H200, Nvidia's second-most powerful chip, follows the earlier H20 chip designed specifically for China, which faced a ban. This move could generate a multi-billion-dollar windfall for Nvidia, a company valued at approximately $4.5 trillion.
Under the new terms, the US would receive 25% of the proceeds from sales to China, an increase over the previously reported 15%. Former President Donald Trump has suggested applying similar terms to other chipmakers like AMD and Intel. Despite this progress, national security concerns persist. Senators Elizabeth Warren and Andy Kim have written to Commerce Secretary Howard Lutnick urging tighter limits on chip sales to China and requesting Nvidia CEO Jensen Huang to testify before Congress. Huang has met multiple times with Trump, attended the AI summit, and participated in White House events.
Huang has committed to investing $500 billion in US AI infrastructure over the next four years. He has also visited China multiple times amid changing export controls, noting in October that Nvidia’s market share in China fell from 95% to zero, which he described as a ‘‘strategic mistake’’ due to bans.
China's foreign ministry acknowledged the reports, with final decisions pending. Regulators there may limit access to the H200 chip to protect domestic technology development. Ma Jihua remarked that US curbs might stimulate growth in China's own tech industry.
Nvidia stated that the new measures would support US jobs and manufacturing while balancing national security interests. Trump criticized the previous Biden administration's export restrictions, calling them an ‘‘era-ending policy.’"
