U.S. clears Nvidia AI chip sales to China under new controls
The United States has authorized chipmaker Nvidia to resume sales of its advanced artificial intelligence processors to China under revised export rules, the Department of Commerce confirmed on Tuesday, reports a Qazinform News Agency correspondent.
The decision applies to Nvidia’s H200 chips, the company’s second most advanced AI semiconductors, which had previously been restricted over concerns they could enhance China’s technological and military capabilities. According to the Commerce Department’s Bureau of Industry and Security, shipments will be allowed as long as there is adequate supply of the chips in the United States and Chinese buyers comply with strict security requirements. The chips may not be used for military purposes.
President Donald Trump said last month that sales would be allowed to “approved customers” in China, with a 25% fee collected by the U.S. government. Nvidia welcomed the move. A company spokesperson said it would support U.S. manufacturing and jobs.
The H200 remains one generation behind Nvidia’s Blackwell processor, currently the world’s most advanced AI chip, which is still barred from the Chinese market.
Nvidia has found itself at the center of intensifying U.S.- China competition in artificial intelligence. While Beijing has encouraged domestic firms to rely on homegrown chips, analysts note that Chinese alternatives still lag behind U.S. technology.
Industry experts believe Chinese companies will seek access to H200 chips until local alternatives improve, while Nvidia stands to benefit from renewed revenue, even at lower margins. Washington’s decision to take a share of the sales could also set a broader precedent in future trade negotiations.
Earlier, Qazinform News Agency reported that Nvidia and Eli Lilly announced the launch of a joint AI co-innovation lab aimed at transforming the process of new drug discovery.
