Nvidia Wins U.S. Approval to Sell H200 AI Chips in China Amid Strategic Trade Shift

The United States has announced a major policy shift that will let Nvidia export its H200 artificial intelligence chips to approved customers in China, effectively ending a ban that restricted advanced semiconductor sales to the world's second-largest economy.

The H200 chip is, while a generation behind Nvidia's latest and greatest Blackwell processors, still a formidable AI solution in global demand. The Blackwell series is excluded in the deal to make sure that the most advanced technologies stay restricted. Still, the move could bring in billions in revenue for Nvidia, already overwhelmed with over $500 billion in pending orders worldwide.

The U.S. government has put conditions on the approval, such as a revenue cut of 25% on sales-an increase over a previously announced 15%. This is in an attempt to balance the scales between national security concerns and potential economic benefits. Other American chipmakers, such as Intel and AMD, should also benefit from the easing of restrictions.

The announcement comes against the backdrop of improving relations between Washington and Beijing, with China resuming purchases of American agricultural products and exports of rare earths. Long before the deal, Nvidia's leadership has advocated for access to the Chinese market, underlining the need for embedding U.S. technology standards in the world at large.

The market reacted quickly, and Nvidia's shares increased almost 3% in extended trading. The move reflects the balancing act between economic opportunity and geopolitical rivalry in a critical decision that touches on a vital sector: the global AI and semiconductor industry.