$NVIDIA(NVDA.US) +4.5% pre-mkt after announcing plans last night to resume exports of its H20 AI chip to China after securing Washington's assurances that such shipments would get approved. This is a significant reversal from the Trump administration’s earlier stance on measures designed to limit Beijing’s AI ambitions, and could add billions to NVDA’s revenue this year, restoring its ability to fulfill orders it had written off due to government restrictions.
US government officials told Nvidia they would green-light export licenses for the H20 artificial intelligence accelerator, the company said in a blog post on Monday. NVDA designed the less-advanced H20 chip to comply with earlier China trade curbs from Washington, which Trump’s team tightened in April to block H20 sales to the Asian country without a US permit.NVDA CEO Jensen Huang — who met with President Trump last week and is currently in Beijing attending a government-sponsored conference — appeared on Chinese state broadcaster CCTV shortly after NVDA announced the decision, saying the company had secured approval to begin shipping. The Commerce Department, which oversees US export controls on chips and the tools used to make them, did not immediately respond to requests for comment. The US move comes after weeks of thawing relations between Washington and Beijing, guided by a trade truce that’s designed to see both sides approve exports of crucial technologies. After meeting his Chinese counterpart last week, US Secretary of State Marco Rubio said there’s a “strong desire on both sides” for a meeting between Trump and President Xi Jinping later this year.The copyright of this article belongs to the original author/organization.
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