US Mulls Letting Nvidia Sell H200 Chips to China
The Trump administration is contemplating approving the sale of Nvidia's H200 artificial intelligence chips to China, according to reports, as a bilateral easing improves the chances for US advanced technology exports to China.
According to reports, the Commerce Department, responsible for US export controls, is analyzing a modification to its policy prohibiting the sale of these chips to China, emphasizing that the plans may shift.
The Commerce Department did not provide a response to a request for feedback. Nvidia did not provide a direct response to the review but indicated that existing regulations prevent the company from supplying a competitive AI data center chip in China, ceding that vast market to its swiftly expanding foreign rivals.
The prospect indicates a more amicable stance towards China, following the recent trade and technology war truce negotiated by US President Donald Trump and Chinese leader Xi Jinping in Busan last month.
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Washington's China hawks worry that delivering more advanced AI chips to China could enhance Beijing's military capabilities, concerns that led the Biden administration to impose restrictions on these exports.
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In response to Beijing's forceful enforcement of export restrictions on rare earth minerals vital for manufacturing various tech products, Trump this year indicated potential new limits on tech exports to China but largely retracted them in most situations.
The H200 chip, released two years back, features greater high-bandwidth memory compared to its predecessor, the H100, enabling faster data processing.
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It is believed to be twice as potent as Nvidia's H20 chip, the most sophisticated AI semiconductor permitted for export to China, following the Trump administration's recent reversal of its temporary ban on these sales. Earlier this week, during Saudi Crown Prince Mohammed bin Salman's visit, Nvidia CEO Jensen Huang, whom Trump called a "great guy," was one of the attendees at the White House.