Reuters: ByteDance and Tencent are applying to purchase Nvidia chips

Reuters: ByteDance and Tencent are applying to purchase Nvidia chips

Nvidia has announced it will resume sales of its H20 AI chips to China, following a reversal of US export restrictions. The decision comes after months of shifting US export policies and a meeting between Nvidia CEO Jensen Huang and US President Donald Trump [1].

The company expects to receive US government licenses soon and begin deliveries shortly after. Nvidia has also introduced a new chip, the "RTX Pro," designed specifically for the Chinese market and said to comply fully with current export regulations [1].

The H20 chip, favored for its superior memory bandwidth and seamless integration with Nvidia’s established software ecosystem, was previously restricted due to US export controls. The resumption of sales is expected to have significant financial implications for Nvidia, with the company's stock surging to a new record after the announcement [1].

ByteDance and Tencent, two major Chinese technology firms, are among those applying to purchase Nvidia chips. The companies had stockpiled the H20 in early 2025 amid fears of restrictions, according to GuruFocus. The chip’s popularity and performance meant Nvidia stood to lose as much as $16 billion in revenue when the initial ban was enforced in April [2].

The reversal of restrictions comes amidst geopolitical tensions and competing pressures facing US policymakers. While the move aims to balance national security concerns and economic interests, critics have questioned the consistency of US policy [1].

Nvidia's strategic pivot includes regulatory compliance, product innovation, and geographic diversification. The company's ability to navigate geopolitical shifts positions it to capitalize on China's AI infrastructure boom while maintaining US favor [3].

References:
1. [1] https://tribune.com.pk/story/2555988/nvidia-to-resume-china-chip-sales-amid-shifting-us-export-policy
2. [2] https://www.ainvest.com/news/nvidia-resume-ai-chip-sales-china-meeting-trump-2507/
3. [3] https://www.ainvest.com/news/nvidia-strategic-pivot-navigating-geopolitical-shifts-dominate-ai-chip-landscape-2507/