The U.S. Department of Commerce has granted Nvidia permission to export its advanced H200 AI chips to China, marking a significant shift in regulatory stance. As initially reported by Semafor, these chips will be available to select approved buyers in the country, with the U.S. government taking a 25% share of the sales revenue, CNBC noted.
While the H200 chips are cutting-edge, it’s important to highlight that only those developed approximately 18 months ago will be permitted for export. This development comes shortly after U.S. Commerce Secretary Howard Lutnick indicated that the final decision on these exports lay in the hands of President Trump.
This decision has attracted scrutiny due to escalating Congressional concerns regarding national security. In light of this, Senators Pete Ricketts (R-NE) and Chris Coons (D-DE) introduced the Secure and Feasible Exports Act (SAFE) Chips Act, aiming to prohibit the export of advanced AI chips to China for a duration of 30 months. The timing of a legislative vote on this bill remains uncertain, particularly given the recent approval for H200 chip sales.
Throughout this period, the U.S. government has oscillated in its approach to chip exports. Following the introduction of stringent licensing requirements in April, a reversal occurred in May, leading to a strategy where companies could resume exports, provided 15% of their revenue went to the U.S. government. However, this move coincided with a tightening market as China’s Cyberspace Administration banned domestic firms from purchasing Nvidia’s products, forcing reliance on less advanced alternatives from local companies like Alibaba and Huawei.
In a recent update on December 8, President Trump remarked on the issue, stating that Chinese President Xi Jinping showed interest in the news regarding the H200 chip exports on his Truth Social platform.
Key Points:
– Nvidia’s H200 chips now approved for export to select Chinese customers.
– U.S. government takes a 25% cut from sales.
– Only H200 models approximately 18 months old will be exported.
– Congressional leaders propose legislation to block advanced AI chip exports to China.
– Recent bans in China could limit Nvidia’s market presence there.
