Nvidia has received approval from the US government to sell its advanced H20 computer chips used for artificial intelligence to China. The company's CEO, Jensen Huang, announced the news in a blog post and during a televised interview in China. The H20 chips are a lower-powered version of Nvidia's H100, designed to comply with earlier US export restrictions.
The US government had restricted sales of Nvidia's H20 AI chips to China in April 2025, citing concerns about potential military applications. In response, Nvidia made significant downgrades to the H20 chip, including reduced memory capacity and performance, to meet the US export licensing requirements.
China is a crucial market for Nvidia, accounting for a substantial portion of its revenue. In fiscal 2024, Nvidia generated $17 billion in sales in China. The approval allows Nvidia to resume sales of its H20 AI chips to China, ending months of regulatory uncertainty.
In addition to the H20 chip approval, Nvidia is launching a new GPU model, the RTX PRO, which is fully compliant with US export regulations and tailored for advanced industrial uses like smart factories and digital twins. Following the announcement, Nvidia's shares climbed around 3%, and related tech stocks in Asia also saw gains.
The development highlights the delicate balance between national security and global competitiveness in the tech industry. As Nvidia navigates the complex regulatory landscape, the company's ability to adapt to changing export restrictions will be crucial in maintaining its presence in the Chinese market.
