The United States has reportedly begun a review that could see some of Nvidia’s most powerful artificial intelligence chips sold in China, reversing export restrictions.
Nvidia’s H200 chips are its second-most powerful, after its flagship Blackwell chips. The U.S. Commerce Department has sent licence applications for H200 sales in China to the Departments of State, Energy, and Defense, Reuters reported.
U.S. President Donald Trump said earlier this month that the U.S. planned to allow H200 sales in China. “I have informed President Xi [Jinping], of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” he wrote on Truth Social.
Xi “responded positively”, according to Trump, but China is seeking to limit access to H200 chips over national security concerns. China’s regulators have discussed requiring a governmental approval process for H200 buyers, the Financial Times reported, though a final decision has not been made.
The Departments of State, Energy, and Defense have 30 days to review the H200’s prospective licences.
Nvidia has also reportedly told its Chinese buyers that it is considering raising production capacity for the H200s after receiving large numbers of orders in the country.
These potential Chinese buyers would include Alibaba and ByteDance, per Reuters.
If H200 sales are allowed in China, Trump said, 25% of Nvidia’s China revenue would be paid to the U.S. government. Nvidia was offered U.S. export licences for its less-advanced H20 chips in China in August, and agreed to give the U.S. government 15% of its Chinese revenues at the time.
The U.S. had banned sales of advanced AI chips in China during the previous Joe Biden administration, arguing that these could support the development of China’s military technology.
China has worked to boost its domestic chipmakers, and is reportedly preparing a US$70 billion incentives package for the sector.
Nvidia's (NASDAQ: NVDA) shares closed at $180.99 on Friday, up from a previous close at $174.14. Its market capitalisation is $4.40 trillion.
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