Nvidia's CEO confirms U.S. greenlight to sell H20 AI chips in China, a significant development in AI market competition.
Apparently, there has been a shift in U.S. export policy. Nvidia Corporation announced on Tuesday that it will resume sales of its H20 AI chips to China. This came after receiving assurances from the U.S. government that export licenses will be granted, marking a dramatic reversal in the ongoing U.S.-China technology trade tensions.
The world's most valuable chipmaker said it is filing applications with the U.S. government to resume sales of the previously restricted H20 graphics processing units (GPUs) to Chinese clients, with deliveries expected to begin soon.
"The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon," the company said in a press release on Tuesday.
A Strategic Victory for Nvidia
The announcement represents a significant win for Nvidia, which had been forced to take a $5.5 billion write-off related to H20 inventory and commitments after the Trump administration effectively banned sales of the chip in April 2025. CEO Jensen Huang had previously stated that the restrictions also forced the company to walk away from approximately $15 billion in potential sales.
"The lifting of the H20 ban marks a significant and positive development for Nvidia, which will enable the company to reinforce its leadership in China," said Ray Wang, research director of semiconductors, supply chain, and emerging technology at Futurum Group.
The H20 chip, specifically designed to comply with earlier U.S. export controls, had been Nvidia's most powerful AI chip legally available in the Chinese market until the April restrictions. The H20 chips had been designed specifically to bypass earlier export controls on Beijing.
Meeting With Trump Precedes Announcement
The potential change in U.S. stance follows a meeting between Huang and U.S. President Donald Trump last week. During the White House meeting on Thursday, July 10, Huang reaffirmed Nvidia's support for the administration's job creation and onshoring efforts, as well as the goal for America to lead in global AI development.
The timing of the announcement is particularly notable. The news came just days before Huang's scheduled media briefing in Beijing on Wednesday (July 16), where he will attend the third China International Supply Chain Expo (CISCE). This marks his third visit to China in 2025, underlining the strategic importance of the Chinese market to Nvidia's growth plans.
New Compliant Chip Also Announced
Alongside the H20 resumption, Huang also announced a new "fully compliant" GPU, NVIDIA RTX PRO, saying it was ideal for smart factories and logistics. While details remain limited, industry sources suggest this could be the RTX Pro 6000D, based on Nvidia's Blackwell architecture, which is expected to launch in September 2025.
While the H20 resumption represents a positive development for Nvidia, challenges remain. Chinese companies had been stockpiling H20 chips earlier in the year, with reports indicating that leading Chinese tech firms purchased $16 billion worth of the chips in the first quarter of 2025 alone, anticipating potential restrictions.
