NVDA: U.S. Clears Nvidia to Resume H20 GPU Sales to China

Nvidia announced that it will resume shipping its H20 GPUs to China

Nvidia trying to recover some of last year's losses

Quick overview

  • Nvidia will resume shipping its H20 GPUs to China following a sales suspension due to US export restrictions, with approval expected soon.
  • The company introduced the RTX Pro graphics processor, designed for industrial applications in China and compliant with current regulations.
  • CEO Jensen Huang has been engaging with US and Chinese officials to promote collaboration on AI research and ensure Nvidia's operations in both markets.
  • The restart of shipments signifies Nvidia's ability to navigate geopolitical challenges and meet the high demand for advanced AI technology in China.

Nvidia announced that it will resume shipping its H20 GPUs to China after a sales suspension due to US export restrictions. The US Commerce Department has received the company’s license applications, and approval is expected “soon.” Once the documentation is complete, Nvidia will promptly restart shipments to Chinese customers.

NVDA revealed a new graphics processor called the RTX Pro, along with resuming H20 GPU shipments. This model aims to be “fully compliant” with current regulations and is designed for industrial applications in China that involve digital twin artificial intelligence. Its introduction demonstrates Nvidia’s commitment to conducting business within the rules set by the US and Chinese governments.

Jensen Huang, Nvidia’s CEO, has been actively engaging with Chinese and American officials to highlight the company’s support for open-source projects and to promote collaboration on AI research.

Huang recently met with President Donald Trump and several lawmakers in Washington, DC, before visiting China to meet with Chinese officials. These meetings aimed to foster cooperation and ensure Nvidia can continue operating in both markets

The restart of H20 GPU shipments to China marks a significant step forward for Nvidia. It shows the company’s ability to navigate challenging geopolitical and regulatory environments, while also allowing it to reenter a crucial market. With the ongoing high demand for advanced AI and graphics processing units in China, this move is expected to benefit Nvidia’s business in the region.
US export restrictions on advanced semiconductors and chips previously prevented Nvidia from entering the Chinese market. To overcome these restrictions, the company had been developing a smaller version of the H20 GPU.

The decision to halt sales also led to a multibillion-dollar inventory write-off, as back orders could not be fulfilled. Huang has tried to alleviate concerns that Chinese military projects might benefit from Nvidia hardware.

He stated, “According to him, the U. S. need not worry about US technology being used by the PLA since “they just can’t rely on it.” He added that China already has enough computing power and noted that Washington could revoke access at any time.

“They don’t need Nvidia’s chips or American tech stacks to build their military,” Huang continued.

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Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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