NVIDIA Resumes H20 GPU Sales in China Amid Policy Shift

NVIDIA has announced that it will resume the sale of its H20 GPUs in China and introduce a new GPU model specifically designed for the Chinese market. The company's founder and CEO, Jensen Huang, stated that NVIDIA has submitted an application to resume selling the H20 GPUs and that the U.S. government has assured the company that it will grant the necessary permits, with the aim of resuming deliveries as soon as possible.

This decision comes after a period of strict export restrictions imposed by the U.S. government on advanced NVIDIA chips, which had significantly impacted the company's operations in China. The U.S. government had implemented stringent export controls on NVIDIA's advanced AI chips in 2022, which were further tightened in April of this year. These restrictions led to the H20 chips being unable to continue sales in China, effectively excluding NVIDIA from a significant portion of the Chinese market.

Huang had previously criticized the U.S. government's export controls, describing them as "failed" and warning that these measures had unintended consequences. He argued that the restrictions had not only failed to curb China's advancements in AI but had instead accelerated the growth and innovation of Chinese competitors, including Huawei. Huang emphasized that the AI chip market in China is expected to reach approximately $500 billion in the next two to three years, and failing to participate in this market would be a significant loss for the U.S.

NVIDIA's decision to resume sales in China is seen as a strategic move to regain market share and mitigate the financial impact of the previous restrictions. The company's new GPU model, the NVIDIA RTX PRO, is designed to be fully compatible with the Chinese market, addressing the specific needs and requirements of local customers. This move is expected to help NVIDIA regain its foothold in the Chinese market and continue to drive innovation in the AI sector.

The resumption of H20 sales in China is also part of a broader effort by NVIDIA to promote AI and its benefits globally. Huang has been actively advocating for the use of AI as a fundamental resource, similar to energy, water, and the internet. He has emphasized the importance of open-source research and basic models in driving AI innovation and has called for global collaboration to ensure that AI benefits everyone.

In summary, NVIDIA's decision to resume the sale of its H20 GPUs in China and introduce a new GPU model tailored for the Chinese market is a significant development in the AI chip industry. This move is expected to help NVIDIA regain market share in China, mitigate the financial impact of previous restrictions, and continue to drive innovation in the AI sector. The company's commitment to promoting AI as a fundamental resource and advocating for global collaboration is also expected to have a positive impact on the industry as a whole.