The Trump administration will once again grant Nvidia permission to export the H20 GPU to China, after previous restrictions halted the process.
Nvidia can once again export the H20 GPU to China, as confirmed by CEO Jensen Huang. Although the company does not yet have the licenses, the Trump administration has assured Nvidia that the export licenses will be granted. Nvidia has submitted the necessary applications.
Tailored to the Restrictions
Nvidia developed the H20 specifically for the Chinese market. The chip is a scaled-down version of the GPUs the company sells to the West. Nvidia built the accelerator within the constraints of previous export restrictions and invested heavily in it. In April, the US government suddenly decided to tighten the rules, rendering the H20 useless.
Since then, Huang has been active. Diligent lobbying in the US is now paying off. Nvidia can sell its H20 again. Huang also announces a Nvidia RTX Pro-GPU tailored for workstations that should be suitable for export.
Large Market
Nvidia sees a large market for AI chips in China, but the US sees mainly a competitor that needs to be kept in check. This creates tension, with the government wanting to restrict American AI chips. Export restrictions hurt companies like Nvidia, as China is a huge market. The expected revenue from the sale of the H20 alone is estimated to be around 15 billion dollars.
Huang wants to entice policymakers with the notion that the American AI technology stack should be as ubiquitous as the dollar. Opponents mainly see tools that China can use to develop AI and surpass the US.
Additionally, China is not idle: it is building its own chips to reduce dependence on the US, and although they are not yet competitive, export restrictions to the US indirectly facilitate the creation of a Chinese Nvidia competitor.
The assurance from the Trump administration that the export licenses will be granted marks a reversal of the strict anti-China AI policy the administration has pursued so far. Nvidia will be pleased, but not every policymaker in the US will share that joy.