Key Points
- Nvidia is applying for U.S. licenses to resume selling its powerful H20 AI chips in China and expects approval soon.
- Major Chinese tech firms, including ByteDance and Tencent, are lining up to purchase the chips.
- The potential sales could generate 15−20 billion in new revenue for Nvidia, reversing a major financial hit from the initial U.S. export ban.
- Nvidia CEO Jensen Huang is visiting Beijing, emphasizing China as a critical market for the company’s growth.
Chinese tech giants are rushing to buy Nvidia’s H20 artificial intelligence chips, as the company says it expects the U.S. government to approve its request to resume sales to the mainland soon. The move comes just days after Nvidia’s CEO, Jensen Huang, met with U.S. President Donald Trump.
These powerful AI chips have been at the center of U.S. export bans aimed at preventing advanced technology from falling into Chinese hands due to national security concerns. The restrictions were costly for Nvidia, which previously stated the ban would cost it $15 billion in potential revenue.
Nvidia CEO Jensen Huang is currently in Beijing, where he has stressed the importance of the Chinese market. The company is now actively filing applications for licenses to sell the H20 graphics processing units (GPUs). Sources familiar with the matter say Nvidia has even created a “whitelist” for major Chinese companies, such as ByteDance and Tencent, to register their interest.
News of the potential sales sent Nvidia’s stock up 5%, with rival AMD also seeing a boost. Analysts believe the renewed access to China could represent $15 billion to $20 billion in additional revenue for Nvidia this year. The company might also be able to reverse a $5.5 billion charge it took for unsold inventory.
To navigate the complex U.S. rules, Nvidia also announced a new, less powerful chip called the RTX Pro GPU. The company described it as “fully compliant” with export controls and designed specifically for the Chinese market.
While relations between Washington and Beijing are improving, experts note that Chinese companies will likely continue to seek alternative chip suppliers to safeguard their supply chains against future political uncertainty.
