Nvidia and AMD Set to Resume AI Chip Sales to China Amid Geopolitical Maneuvering
Nvidia is seeking U.S. government approval to resume selling its H20 AI chips to China, following export restrictions due to national security concerns. This potential reversal is part of broader U.S.-China trade negotiations that include rare earths. Meanwhile, rival AMD aims to resume MI308 chip sales to China.
Nvidia is moving towards renewing its sales of H20 AI chips to China, pending licences from the U.S. government amid complex trade negotiations involving rare earths. This step follows a meeting between Nvidia's CEO and President Trump, where discussions about resuming these exports were integrated into a trade deal.
The plan to lift restrictions imposed in April has ignited debate in the U.S., with lawmakers voicing national security concerns. "The decision could dangerously contradict the Administration's stance on China," warned Democratic Representative Raja Krishnamoorthi. Republican John Moolenaar seeks answers from the Commerce Department.
With shares in tech firms like Nvidia and AMD surging, Chinese companies, anticipating resumed chip availability, are rushing orders. Nvidia's market presence and technological leadership are at stake amidst China's demand, while AMD also eyes reinstated shipments of its MI308 chips pending U.S. approval.
(With inputs from agencies.)
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