Nvidia to resume H20 GPU chip sales to China, launches compliant model
Nvidia's AI chips have been a key focus of US export controls designed to keep the most advanced chips out of Chinese hands amid national security concerns, restrictions that the US-listed company said would cut its revenue by $15 billion.
The world's most valuable firm is filing applications with the US government to resume sales to China of the H20 graphics processing unit (GPU), and expects to get the licenses soon, Nvidia said in a statement.
'The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,' it said.
Nvidia, which has criticized the export restrictions the Trump administration imposed in April that stopped it from selling its H20 chip in China, also said it has introduced a new model tailored to meet regulatory rules in the Chinese market.
The White House did not immediately respond to a request for comment.
The US government has expressed concern that the Chinese military could use AI chips to develop weapons.
Nvidia CEO Jensen Huang is scheduled to hold a media briefing in Beijing on Wednesday when he attends a supply chain expo, his second visit to China after a trip in April where he stressed the importance of the Chinese market.
'The Chinese market is massive, dynamic, and highly innovative, and it's also home to many AI researchers. Therefore, it is indeed crucial for American companies to establish roots in the Chinese market,' Huang told Chinese state broadcaster CCTV on Tuesday.
Nvidia has faced increased competition from Chinese tech giant Huawei and other makers of graphics processing units – the chips used to train artificial intelligence. But Chinese companies, including its big tech firms, still crave Nvidia chips due to the company's computing platform known as CUDA.
Huang's visit is being closely watched in both China and the United States, where a bipartisan pair of senators last week sent a letter to the CEO asking him to abstain from meeting companies that are working with military or intelligence bodies.
The senators also asked Huang to refrain from meeting with entities named on the United States' restricted export list.
The move to resume sales of the H20 chips comes amid easing tensions between Washington and Beijing, with China relaxing controls on rare earth exports and the United States allowing chip design software services to resume in China.
'The uncertainties between the US and China remain high and despite a pause in H20's ban, Chinese companies will continue to diversify their options to better protect their supply chain integrity,' said He Hui, research director of semiconductors at Omdia.
The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed on national security grounds in late 2023. The AI chip was Nvidia's most powerful legally available product in China until it was effectively banned by Washington in April.
The H20 ban forced Nvidia to write off $5.5 billion in inventories, and Huang told the Stratechery podcast earlier this year that the company also had to walk away from $15 billion in sales.
Nvidia also announced the development of a new AI chip designed specifically for China, called the RTX Pro GPU. The company described the model as 'fully compliant' with US export controls and suitable for digital twin AI applications in sectors such as smart factories and logistics.
In May, Reuters reported Nvidia was preparing to launch a new AI chip, based on the RTX Pro 6000D, in China at a significantly lower price point than the H20.
The graphics processing unit would be part of Nvidia's latest generation Blackwell-architecture AI processors and was expected to be priced well below the H20 due to its weaker specifications and simpler manufacturing requirements, sources said.
China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales, based on its latest annual report. Huang has consistently highlighted China as a critical market for Nvidia's growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
16 minutes ago
- Bloomberg
Citi Shares Climb to Highest Since 2008 on Stock Buyback Plan
Citigroup Inc. shares rose to the highest level since 2008 after the bank said it would ramp up stock buybacks following a strong result in regulatory stress tests. The bank plans to repurchase at least $4 billion of shares this quarter, Chief Financial Officer Mark Mason said Tuesday on a call with analysts. That's more than the $3.75 billion the firm bought back in the entire first half of the year, and the plans helped push the stock briefly past $90 for the first time since the financial crisis.
Yahoo
17 minutes ago
- Yahoo
Amylyx Pharmaceuticals Shares Promising Avexitide Data for Post-Bariatric Hypoglycemia at ENDO 2025, Phase 3 Enrollment Nears Completion
Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) is one of the best low priced pharma stocks to buy now. On July 13, Amylyx Pharmaceuticals announced new exploratory analyses from its Phase 2 PREVENT and Phase 2b clinical trials of avexitide for post-bariatric hypoglycemia/PBH at the Endocrine Society's annual meeting (ENDO 2025). Avexitide is an investigational, first-in-class glucagon-like peptide-1 (GLP-1) receptor antagonist and has received FDA Breakthrough Therapy designation for PBH. PBH is a complication that can arise after bariatric surgery, such as Roux-en-Y gastric bypass. A medical scientist in a lab coat gazing at a microscopic view of a drug in development. There are currently no FDA-approved treatments for PBH. Avexitide works by binding to the GLP-1 receptor on pancreatic islet beta cells, blocking the effect of excessive GLP-1 and thus mitigating hypoglycemia by decreasing insulin secretion and stabilizing glucose levels. Avexitide has generally been well-tolerated with a favorable safety profile across all trials. Amylyx expects to complete recruitment for the LUCIDITY trial this year, with topline data anticipated in H1 2026. Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) is a clinical-stage pharmaceutical company that discovers and develops treatment options for neurodegenerative diseases and endocrine conditions in the US. While we acknowledge the potential of AMLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNN
17 minutes ago
- CNN
Apple just spent $500 million to source a material that's critical for iPhones from the US
Apple is investing $500 million in a deal with US rare earths company MP Materials as the iPhone maker faces pressure from President Donald Trump to produce its popular smartphones domestically. As part of the partnership announced on Tuesday, Apple committed to buying rare earth magnets directly from MP Materials to help bolster its US supply chain. Apple will also collaborate with the company on a new recycling line in California, which will repurpose recycled rare earth materials to use in Apple products. The move is part of a $500 billion investment Apple announced earlier this year to expand its US operations as the Trump administration pushes to onshore technology manufacturing and reduce reliance on China. Rare earths, which are critical for everything from smartphones to TVs and military jets, have been a key bargaining chip in trade talks between Washington and Beijing. That's because China controls nearly all rare earths processing. 'American innovation drives everything we do at Apple, and we're proud to deepen our investment in the US economy,' Apple CEO Tim Cook said in a press release. 'Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.' MP Materials' facility in Fort Worth, Texas, will create new magnet manufacturing lines specifically for Apple products. Shipments are expected to begin in 2027 and will eventually support 'hundreds of millions of Apple devices,' according to MP Materials. The materials will be delivered throughout the United States and around the world. Apple says the expansion will create dozens of new jobs. Both companies will also provide training to develop a US workforce for magnet manufacturing. China has a virtual monopoly on rare earth elements, which are critical components for everyday products from smartphones to wind turbines to LED lights and flat-screen TVs. They're also crucial for batteries in electric vehicles as well as MRI scanners and cancer treatments. The name rare earths is also a bit of a misnomer. The materials are found throughout the Earth's crust but are difficult and costly to extract and process. China has the only equipment needed to process some of the various elements and currently controls 92% of the global output in the processing stage. While the MP Materials deal could help Apple curry favor with Trump amid tariff threats, it also aligns with Apple's efforts to incorporate more recycled materials into its products – a plan already in place long before Trump took office. The iPhone 16e, which launched earlier this year, includes 30 percent recycled content, for example. Apple says it uses recycled rare earths in its major products, including in magnets found in the latest iPhones, iPads, Apple Watches, MacBook and Mac models. The Trump administration has been pushing for Apple and other tech giants to produce their products in the United States rather than rely on assembly facilities and supply chain operations largely located in China, India and Vietnam. 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,' Trump posted on Truth Social in May. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' Apple hasn't discussed plans to move iPhone manufacturing to the US, and doing so seems unlikely. That's because it would require the tech giant to upend how it builds its most lucrative product. Critically, Apple and MP Manufacturing's collaboration involves developing the talent pool needed for magnet manufacturing. That's part of the reason why it's so challenging to move iPhone production to the United States – America lacks the highly specialized labor required to do so, experts have said. 'The expertise to make each of the components is something that has to be worked on for a long period of time,' David Marcotte, senior vice president at international market research company Kantar, previously told CNN. Cook has also spoken about the labor gap in the past, describing the workforce in China as being a combination of 'craftsman' skills, 'sophisticated robotics' and 'the computer science world' when speaking at a Fortune Magazine event in 2017. But the commitment to invest in US-sourced rare earths is likely to please Trump. The president has touted Apple's previous investment announcement as a victory in his efforts to boost American manufacturing. Apple is just one of many tech giants that have expanded their American footprint over the past several months. Texas Instruments committed $60 billion to make semiconductors in the United States in June, and Taiwanese chipmaking giant TSMC invested $100 billion in US manufacturing in March. Leading AI chipmaker Nvidia also said it would build its supercomputers in the United States in April. – CNN's Chris Isidore contributed to this report
