NVIDIA Resumes Sales of AI Chips to China After US Government Approval
It seems like there's been a bit of a U-turn! NVIDIA, the big name in AI chips, has announced that they've received the go-ahead from the US government to start selling their H20 AI GPUs in China once more. This is big news, considering sales were previously blocked due to concerns about potential military applications.
According to NVIDIA, they're already filing the necessary paperwork and are optimistic about resuming shipments soon. They even mentioned a new RTX Pro GPU specifically designed to comply with Chinese market regulations, targeting applications like smart factories and logistics.
To give you some background, the US government started clamping down on exports of high-end AI chips, like NVIDIA's A100 and H200, to China back in 2022. NVIDIA then created modified versions, the A800 and H800, but those got the axe too in 2023. They responded by designing the HGX H20 and other chips to comply with the export rules.
Even the HGX H20 faced an obstacle in April, but the US Department of Commerce seems to have had a change of heart. I'm betting this is a huge relief for NVIDIA because, according to reports, they're sitting on a massive backlog of unshipped orders – we're talking billions of dollars here! They're also projecting a significant revenue boost for 2025 thanks to this decision.
NVIDIA's CEO, Jensen Huang, doesn't seem too worried about the potential military use of these chips by China. He argued that China doesn't need NVIDIA's technology to develop AI for military purposes. He also suggested that restricting NVIDIA's exports would only give an edge to competitors like Huawei, a sentiment he has voiced before.
Source: Engadget