BEIJING: Chinese firms are scrambling to buy Nvidia’s H20 artificial intelligence chips, two sources told Reuters, as the company said it planned to resume sales to the mainland days after its CEO met US President Donald Trump.
Nvidia’s AI chips have been a key focus of US export controls designed to keep the most advanced chips out of Chinese hands over national security concerns. The US-listed company has said the curbs would cut its revenue by US$15 billion.
The world’s most valuable firm is filing applications with the US government to resume sales to China of the H20 graphics processing unit (GPU), and expects to get the licences soon, Nvidia said in a statement.
“The US government has assured Nvidia that licences will be granted, and Nvidia hopes to start deliveries soon,” said the company, whose chief executive, Jensen Huang, is visiting Beijing and set to speak at an event on Wednesday (Jul 16).
The White House, which has previously expressed concern that the Chinese military could use AI chips to develop weapons, did not respond to a request for comment.
Chinese companies have scrambled to place orders for the chips, which Nvidia would then need to send to the US government for approval, the sources familiar with the matter said. They added that internet giants ByteDance and Tencent are in the process of submitting applications.
Central to the process is a “whitelist” put together by Nvidia for Chinese companies to register for potential purchases, one of the sources said.
ByteDance and Tencent did not respond to a request for comment. Nvidia did not respond to a request for comment regarding the “whitelist”.
Nvidia, which has criticised the export curbs the Trump administration imposed in April that stopped it from selling its H20 chip in China, also said it has introduced a new model tailored to meet regulatory rules in the Chinese market.
Huang is set fpr a media briefing in Beijing on Wednesday when he attends a supply chain expo. The Nvidia CEO also visited China in April and stressed the importance of the Chinese market.
“The Chinese market is massive, dynamic, and highly innovative, and it’s also home to many AI researchers,” Huang told Chinese state broadcaster CCTV on Tuesday.
“Therefore, it is indeed crucial for American companies to establish roots in the Chinese market.”
Nvidia’s Frankfurt-listed shares jumped 3.2. per cent.
Asked at a regular foreign ministry briefing in Beijing about Nvidia’s plans to resume AI chip sales, a spokesperson said, “China is opposed to the politicisation, instrumentalisation and weaponisation of science, technology and economic and trade issues to maliciously blockade and suppress China.”
