Nvidia to Resume Sales of ‘H20’ AI Chips to China

 Nvidia announced on July 14, 2025, its plans to resume sales of its H20 artificial intelligence chips to China, reversing a months-long halt imposed by U.S. export restrictions. 

The decision follows high-level negotiations, with CEO Jensen Huang meeting Chinese officials in Beijing, signaling a shift in U.S. policy under the Trump administration amid pressure from tech giants to maintain market access. 

The H20, a modified version of the H100 designed to comply with earlier Biden-era limits, had faced a $5.5 billion charge in April due to a sudden ban, driven by concerns over its potential use in Chinese supercomputers. The resumption, pending regulatory approval, aims to recapture Nvidia’s eroding 50% market share in China, down from 95% in 2021.

The move has sparked debate, with some analysts viewing it as a pragmatic response to China’s demand, boosted by firms like DeepSeek, while others question the national security risks, given the H20’s high-speed memory capabilities. Chinese companies, including Tencent and Alibaba, have placed $16 billion in orders, per industry estimates, though smuggling concerns in Southeast Asia persist. 

Nvidia’s stock rose 4% in after-hours trading, reflecting investor relief, but the decision underscores tensions in the U.S.-China tech race, with critics arguing it undermines efforts to curb Beijing’s AI ambitions, a narrative the company counters by emphasizing economic benefits and tax revenue potential.