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Nvidia has received the green signal to export advanced artificial intelligence chips to China! The US commerce department on Tuesday, signalled a policy shift, approving the tech giant to sell its H200 chips to Beijing, under certain restrictions.The development follows an announcement by US President Donald Trump last month permitting exports of the H200, provided Nvidia can meet conditions, including showing that there is “sufficient” supply within the United States. At the same time, the department highlighted that the company’s most advanced processors will continue to be off-limits to Chinese buyers. The bureau of industry and security (BIS), which oversees export controls, said it has altered its licensing review process for the H200 and comparable chips. Instead of an automatic rejection, applications will now be reviewed on a case-by-case basis. Earlier on December 9, last year, Trump said that he reached an understanding with Chinese President Xi Jinping permitting Nvidia to sell the H200 in China, with the US government set to receive a 25% share of the revenue from those sales.However, even with the regulatory opening, the outlook for demand in China remains uncertain. Reports suggest Beijing has been urging technology firms to rely more heavily on domestically produced chips. According to The Information, Chinese officials have told some companies that approval to buy H200 chips would be granted only in specific situations, such as for university research or development laboratories, sources told AFP. The same outlet had earlier reported that Chinese authorities had asked companies to halt H200 purchases while considering whether to require firms to buy a fixed proportion of AI chips from Nvidia’s Chinese competitors. The policy change marks a clear break from the approach taken under former president Joe Biden, whose administration imposed sweeping restrictions on exports of advanced AI chips over concerns they could be used for Chinese military purposes. Democrats in Congress have since criticised the shift, calling it a serious error that could strengthen China’s military and economic position. Nvidia chief executive Jensen Huang has publicly supported allowing sales of some advanced chips to China, arguing that it is important for AI systems worldwide to be built on US technology. The H200 chips are graphics processing units, or GPUs, which are essential for training AI models that underpin the generative AI surge that began with the launch of ChatGPT in 2022. Nvidia dominates the global GPU market and has become the world’s most valuable company amid intense demand and optimism surrounding AI. While the United States and China continue to compete for leadership in artificial intelligence, the H200 remains a step behind Nvidia’s latest offerings. The chips are estimated to be about 18 months behind the company’s most advanced products, which will continue to be off-limits to China.
