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Reading: Nvidia H20 Chip Sales to China: Resumption Amid US Policy Shift
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PhotoNews Pakistan > Tech > Nvidia H20 Chip Sales to China: Resumption Amid US Policy Shift
Tech

Nvidia H20 Chip Sales to China: Resumption Amid US Policy Shift

Web Desk
By Web Desk Published July 15, 2025 3 Min Read
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Open AI faces competition as Nvidia releases an AI model that is ready to rival GPT-4.0. Photo Credits: ReadWrite
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Nvidia plans to resume sales of its H20 AI chips to China following a reversal of US policy. The company confirmed this in a blog post on July 15, 2025, following the easing of restrictions by the Trump administration. This decision could help recover up to $16 billion in lost revenue. Additionally, Nvidia introduced the RTX Pro chip, specifically designed for the Chinese market and compliant with export regulations.

The US tightened restrictions on H2O sales in April 2025. However, the Trump administration has since relaxed those restrictions. Nvidia is filing for licenses and anticipates quick approval. Deliveries could begin shortly thereafter.

Nvidia has introduced the RTX Pro chip, specifically designed for the Chinese market, with a focus on digital manufacturing applications such as smart factories. This new chip complies with local regulations. Additionally, the H20 chip, designed for AI inference, offers high memory bandwidth and integrates seamlessly with Nvidia’s software ecosystem. While it may not be the highest-performing chip on the market, it is the most powerful option permitted for use in China.

Nvidia plans to resume sales of its H20 AI accelerator to China, after it received assurances from the US government that it would be granted licenses https://t.co/DWgHhigrUW

— Bloomberg (@business) July 15, 2025

Nvidia’s stock hit a record high after the announcement, with shares surging due to investor optimism. Chinese companies like ByteDance, Alibaba, and Tencent had previously stockpiled H20 chips out of fear of additional bans. The restrictions imposed in April cost Nvidia approximately $16 billion.

Read: Nvidia Reaches $4 Trillion Market Cap: Historic Milestone in AI Era

Nvidia CEO Jensen Huang attended a fundraiser with Trump at Mar-a-Lago. He committed to US investments, including $500 billion in AI data centres with TSMC. This influenced the White House to soften curbs.

Jensen Huang, CEO of U.S. tech giant Nvidia, announced Tuesday in Beijing that the company's H20 chips will soon be available in the Chinese market as the U.S. government has approved for the company filing licenses to start shipping H20s to China pic.twitter.com/gInnR6zOAO

— China Xinhua News (@XHNews) July 15, 2025

Nvidia spokesperson Hector Martinez highlighted CEO Jensen Huang’s discussions with officials in Washington and Beijing, where they emphasised the benefits of AI for society. However, critics caution that this policy reversal undermines U.S. efforts to limit China’s growth in AI technology. Chinese companies, like DeepSeek, have been using banned chips through alternative channels. This shift in policy reflects the ongoing tension between national security and economic interests. Given the current state of U.S.-China relations, further policy changes are likely.

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