NVIDIA allowed to sell H20 AI chips to China following Trump meeting
Geopolitical tensions between Beijing and Washington have heightened since Trump returned to the Oval Office in January of this year, and at the heart of the economic dispute is AI.
Earlier this month, NVIDIA became the first public company in history to surpass $4 trillion in market capitalisation on Wall Street.
In April, the Trump administration restricted sales of NVIDIA's AI chip to China, but that decision has now been reversed following a positive meeting between Huang and Trump.
The announcement has sparked a frenzy amongst a number of Chinese companies that are desperate to secure the H20 AI chip.
Shares in NVIDIA have rose by 4% as a direct consequence of the announcement.
The Trump administration confirmed that NVIDIA would be allowed to sell the H20 chip after licenses WERE granted by the Commerce Department.
NVIDIA will resume deliveries of the chip, which was specifically designed for Chinese customers and has been a top seller in the country since its initial rollout in 2024.
In addition to this, Huang has confirmed that the chip behemoth has developed a new AI chip for China that he said would be useful for factory automation and logistics.
The chip is built on the Blackwell architecture—which is NVIDIA's most advanced on the market—but is downgraded in some features to address U.S. officials' concerns about exports to China, people familiar with the chip said.
The decision by US authorities to allow NVIDIA to resume sales of its H20 AI chips to China is seen my many analysts and political commentators as an act of 'good will' in continued trade talks between the two economic superpowers. Access to AI chips and other advanced technologies has been a key priority for Chinese negotiators.
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