H200 Chips to China

The US government is set to permit Nvidia to export its H200 AI chips to China, signalling a shift in technology export policies. This decision updates existing export controls on advanced technologies, balancing national security concerns with economic interests. The move follows a truce in the US-China trade and tech war. Administration officials view this as a compromise, as they are not allowing the export of Nvidia's latest Blackwell chips, but also want to avoid pushing China to rely solely on domestic alternatives like Huawei.

The H200 chip, which has more high-bandwidth memory, would enable Chinese AI labs to construct AI supercomputers with performance levels approaching those of top US systems, albeit potentially at higher costs. Some US politicians have voiced concerns that providing China with advanced AI chips could accelerate its military capabilities and undermine US economic and national security.

Nvidia's CEO has previously expressed uncertainty about whether China would even accept the H200 chips if restrictions were eased, highlighting the complexities surrounding this policy change.