Nvidia Set to Resume H20 GPU Sales in China with US Government Backing

Chipmaker Nvidia, led by CEO Jensen Huang, has announced plans to resume the sale of its H20 AI accelerator chips to China.

The decision follows assurance from the U.S. government that licenses for the shipments will be approved, signaling a shift from previous export restrictions.

In a blog post, Nvidia shared that Huang met with President Donald Trump and U.S. policymakers last month.

During the meeting, Huang reaffirmed Nvidia’s support for the administration’s job creation and manufacturing efforts, as well as its aim to ensure American leadership in artificial intelligence.

US Government Gives Green Light for H20 Chip Licenses

According to Nvidia, applications to sell the H20 GPU have been filed again, with assurances from U.S. authorities that the necessary licenses will be granted. The company expressed hope that deliveries would begin soon.

Huang explained the importance of U.S. technology in global AI development. “General-purpose, open-source research and foundation models are the backbone of AI innovation,” he said.

“We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America.”

Significance for Nvidia’s China Market and AI Supply Chain

The resumption of H20 chip sales marks a major step for Nvidia’s operations in China. Due to previous U.S. export controls, the company had designed special versions of its chips for Chinese clients.

CNBC’s Jim Cramer commented on X, calling the move “so huge” that it could impact Nasdaq futures. Following the announcement, the Nasdaq-100 futures rose by 12.50 points, while the Dow Jones increased by 88.14 points.

Vey-Sern Ling of Union Bancaire Privee called the development “positive” for Nvidia, the AI semiconductor supply chain, and Chinese tech platforms working on AI. He added that it could also support improved U.S.-China relations.

New RTX Pro GPU Announced for China

In addition to the H20, Nvidia also unveiled a new GPU, the RTX PRO, described as “fully compliant” with U.S. export guidelines.

This chip is intended for industrial applications like digital twin AI for smart factories and logistics. It lacks advanced features such as high-bandwidth memory and NVLink, making it compliant with trade regulations.

Nvidia said earlier that the U.S. government in April had halted H20 sales to China, requiring licenses for export. The H20 had been specifically designed to comply with earlier restrictions.

After lobbying efforts and direct dialogue with U.S. leaders, Nvidia received assurance that license approvals were forthcoming.

Jensen Huang’s Lobbying and Concerns About U.S. AI Leadership

Huang has stepped up efforts to challenge the export limits, warning they could harm American competitiveness in AI.

In May, he noted that Nvidia’s market share in China had nearly halved due to the restrictions. He emphasized the need for American firms to compete and serve markets like China.

Last month, the U.S. and China reached a preliminary trade understanding. The agreement included easing of rare-earth export controls by China and a softening of U.S. tech restrictions.

Nvidia’s Diplomatic Approach and Continued Expansion

During his visit to Beijing, Huang met government officials and customers to present Nvidia’s updated strategies for the Chinese market. He is also seeking a meeting with Chinese Premier Li Qiang, marking his increasing diplomatic role in the tense U.S.-China tech landscape.

Nvidia additionally confirmed plans to launch a new China-specific GPU based on the latest Blackwell RTX Pro 6000 processor, which will replace the Hopper-based H20 chips.

These new chips are suitable for small AI models and industrial simulations, though they lack some of Nvidia’s most powerful features.

Strong Demand for H20 and China’s Growing Domestic Push

Despite being less powerful than Nvidia’s top-tier offerings, the H20 remains in demand in China.

The release of DeepSeek’s R1 model in January spurred AI activity, prompting major firms like ByteDance, Alibaba, and Tencent to buy the chip in large volumes before the ban.

According to sources, Chinese clients began contacting Nvidia immediately after the announcement, seeking guidance on the licensing process.

Though the U.S. has given its assurances, uncertainties remain around the time frame for deliveries.

At the same time, Beijing is encouraging increased adoption of domestic chips from companies like Huawei, Cambricon, and Biren. Still, Nvidia remains the top choice for AI work due to its robust software ecosystem that simplifies model training and deployment.