Key Points
- U.S. Commerce Department authorizes Nvidia to sell H200 AI chips to approved Chinese customers.
- The United States will receive a 25% share of the revenue from these chip sales.
- Exported chips are approximately 18 months old, not the latest generation.
- Senators have introduced the SAFE Chips Act to block advanced AI chip exports for up to 30 months.
- Nvidia praised the decision as a balanced approach supporting U.S. jobs and security.
- Previous policy shifts included licensing requirements and the rescinding of an export restriction rule.
- China’s regulator previously banned domestic purchases of Nvidia chips, leading to reliance on local alternatives.
Regulatory Approval
The Department of Commerce announced that Nvidia may export its H200 AI chips to vetted Chinese customers. Under the terms of the license, the United States will receive a 25% cut of the revenue from these sales. The chips permitted for export are described as being about 18 months old, making them less advanced than the latest H200 models.
Political Context
The approval arrives as Republican and Democratic senators have introduced legislation aimed at restricting advanced AI chip sales to China. The Secure and Feasible Exports (SAFE) Chips Act would require the Commerce Department to deny export licenses for advanced AI chips for a period of 30 months. Lawmakers argue that such restrictions are needed for national‑security reasons.
Industry Reaction
Nvidia’s spokesperson praised the decision, noting that it balances U.S. competitiveness with security concerns. The company highlighted the importance of supporting high‑paying jobs and American manufacturing while complying with the new export framework.
Policy Background
Earlier this year, the U.S. government imposed licensing requirements on chip shipments to China, then later rescinded a previous rule that would have limited AI chip exports. The shifting policy environment reflects broader trade negotiations, with the United States seeking to use chip sales as a bargaining tool. Previously, China’s internet regulator banned domestic firms from purchasing Nvidia chips, prompting reliance on local alternatives.
Future Outlook
The approval is expected to stimulate limited AI chip sales to China, but the pending SAFE Chips Act could halt future exports if enacted. Stakeholders will watch the legislative process closely to gauge the long‑term trajectory of U.S.–China technology trade.
Source: techcrunch.com