Nvidia Wins China AI Approval

Nvidia has secured a significant win with the US government's decision to permit AI chip exports to China. This reverses previous restrictions on high-end chip exports, specifically impacting Nvidia's H200 series. The decision aims to allow American companies to retain a share of the Chinese market, limiting the advancement of Chinese competitors like Huawei. The US will reportedly gain 25% revenue from H200 chip exports to China.

This move follows concerns that restrictions were slowing innovation and forcing companies to produce lower-performance chip versions. Nvidia's CEO has argued that exporting AI chips is critical for growing the company's market share and maintaining US technological leadership. The approved exports will be closely monitored to safeguard national security.

Despite this decision, some experts believe that China may continue to prioritise domestic alternatives, regardless of the availability of Nvidia's H200 chips. Previously, China banned imports of Nvidia's less powerful H20 chip to protect Huawei from competition.