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Nvidia's Older AI GPU Chips Allowed for Sale in China Amid Trump Administration Agreement
ByAinvest
Monday, Jul 21, 2025 8:02 pm ET1min read
Nvidia has reached an agreement with the Trump Administration to sell older AI GPU chips to China. This comes as a not-huge surprise, as the company previously took a large charge due to the assumption that it would not be able to sell to China. The agreement marks a shift in the US government's stance on selling to China and could be seen as a sign of a thawing relationship between the two countries.
Nvidia, a leading manufacturer of artificial intelligence (AI) chips, has announced that it will resume sales of its H20 GPU chips to China. This move comes after the company received assurances from the U.S. government that licenses would be granted, allowing for the resumption of deliveries. The H20 chips, designed to be less powerful than Nvidia's flagship H100 chip, were previously restricted from being sold to China due to U.S. export controls.The decision to resume sales of the H20 chips is seen as a significant shift in the U.S. government's stance on selling to China. Nvidia CEO Jensen Huang expressed his enthusiasm for the development, stating that the company is looking forward to shipping the H20 chips to the Chinese market soon. This move is also seen as a sign of a potential thawing relationship between the U.S. and China, as the two countries have been easing tensions in recent months.
The agreement to resume sales of the H20 chips is part of a broader effort by the U.S. government to relax controls on rare earth exports and allow chip design software services to resume in China. This move is expected to have a significant impact on the AI industry in China, as the H20 chips are essential for training advanced AI models.
In addition to the resumption of sales of the H20 chips, Nvidia has also announced the development of a new AI chip called the RTX Pro GPU. The new chip is designed for computer graphics, digital twins, and AI, and is expected to be a significant addition to Nvidia's product line.
The resumption of sales of the H20 chips to China is likely to have a positive impact on Nvidia's financial performance, as the company had previously taken a large charge due to the assumption that it would not be able to sell to China. The company is expected to benefit from increased sales and revenue in the Chinese market.
References:
[1] https://news.cgtn.com/news/2025-07-15/NVIDIA-to-resume-sales-of-H20-GPU-chips-to-China-1F1DxYzCxmE/p.html
[2] https://www.vox.com/future-perfect/419791/trump-nvidia-h20-china-ai-chip
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