Nvidia, AMD Resume China Sales

Nvidia and AMD are set to resume selling some AI chips to China after receiving assurances from the US government that export licenses will be approved. This marks a shift from previous restrictions aimed at limiting China's AI development. Nvidia plans to restart shipments of its H20 AI accelerator, a chip designed to comply with earlier trade curbs. AMD intends to resume sales of its MI308 chips to China once licenses are approved.

The US government's decision follows a period of strained relations and aims to strike a balance between national security and economic interests. Nvidia CEO Jensen Huang reportedly met with President Trump, securing assurances for export licenses. Chinese firms are reportedly eager to secure orders for Nvidia's H20 chips, anticipating increased demand for data centre infrastructure. The resumption of chip sales has sparked market gains for both Nvidia and AMD.

While the move is seen as a positive step for US chipmakers, some concerns remain about potential military applications of the chips and the need to maintain a competitive edge against Chinese companies like Huawei. Despite these concerns, the US government seems to recognise the importance of the Chinese market for American tech companies.