Nvidia’s plans to resume selling its H20 AI chips to China are entwined with U.S. discussions regarding rare earths, as highlighted by Commerce Secretary Howard Lutnick. This announcement follows a meeting between the company’s CEO and President Donald Trump, with the trade deal aiming to facilitate rare earth shipments to U.S. manufacturers. However, specific details about this development were scarce.
On Monday, Nvidia applied to the U.S. government for permission to resume H20 sales to China and received assurances that the licenses would be granted soon. This move reverses an export ban implemented in April to prevent advanced AI technology from reaching China due to national security concerns, which has sparked bipartisan criticism among U.S. legislators. Key figures in Congress expressed alarm that such sales could undermine national security, citing the significant role of these chips in advancing Chinese AI capabilities.
The significance of the H20 chips extends to their compatibility with Nvidia’s industry-standard software tools, which could enhance China’s AI capabilities if enough chips are exported. Nvidia’s CEO emphasized that the Chinese market is vital for maintaining the company’s competitive edge, given the revenue generated from this sector. The potential impact of resuming sales is substantial, as it may influence the global dynamics in AI technology between the U.S. and China.
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