Nvidia to resume H20 GPU chip sales to China, launches mainland-compliant model
The move to resume sales of the H20 chips comes amid easing tensions between Washington and Beijing, with China relaxing controls on rare earth exports and the United States allowing chip design software services to resume in China. The H20 chip was developed specifically for the Chinese market after U.S. export restrictions were imposed on national security grounds in late 2023. The AI chip was Nvidia's most powerful legally available product in China until it was effectively banned by Washington in April. The H20 ban forced Nvidia to write off $5.5 billion in inventories, and Huang told the Stratechery podcast earlier this year that the company also had to walk away from $15 billion in sales. Nvidia's AI chips have been a key focus of U.S. export controls designed to keep the most advanced chips out of Chinese hands, amid intense competition between the superpowers to dominate the AI race. The company also announced the development of a new AI chip designed specifically for China, called the RTX Pro GPU. Nvidia described the model as 'fully compliant' with U.S. export controls and suitable for digital twin AI applications in sectors such as smart factories and logistics. In May, Reuters reported Nvidia was preparing to launch a new AI chip, based on the RTX Pro 6000D, in China at a significantly lower price point than the H20.
The graphics processing unit would be part of Nvidia's latest generation Blackwell-architecture AI processors and was expected to be priced well below the the H20 due to its weaker specifications and simpler manufacturing requirements, sources said. Huang has met with U.S. President Donald Trump and policymakers in Washington and later with officials in Beijing, as part of efforts to promote AI cooperation and highlight Nvidia's support for open-source research and global AI development, the company said.
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Business Standard
22 minutes ago
- Business Standard
Daunted by trade war, US firms in China report record-low investment plans
American companies in China are reporting record-low new investment plans for this year and declining confidence in their profitability, with uncertainty in US-China relations and President Donald Trump's tariffs their top concerns, according to a new survey. The companies are also challenged by China's slowing economy, where weak domestic demand and overcapacity in local industries are eroding profitability for the Americans. Businesses in China are less profitable now than they were years ago, but risks, including reputational risk, regulatory risk, and political risk, are increasing, said Sean Stein, the president of the US-China Business Council, a Washington-based group that represents American companies doing business in China, including major multinationals. The survey, conducted between March and May and drawing from 130 member companies, was released Wednesday. It came as the two countries clash over tariffs and non-tariff measures, including export controls on critical products such as rare-earth magnets and advanced computer chips. Following high-level talks in Geneva and London, US and Chinese officials agreed to pull back from sky-high tariffs and restrictions on exports, but uncertainty persists as the two sides are yet to hammer out a more permanent trade deal. Kyle Sullivan, vice president of business advisory services at the USCBC, said more than half of the companies in the survey indicated they do not have new investment plans in China at all this year. "That's a record high, Sullivan said, noting that it is a new development that we have not observed in previous surveys. Around 40 per cent of companies reported negative effects from US export control measures, with many experiencing lost sales, severed customer relationships, and reputational damage from being unreliable suppliers, according to the survey. Citing national security, the US government has banned exports to China of high-tech products, such as the most advanced chips, which could help boost China's military capabilities. Stein argued that export controls must be very carefully targeted, because businesses from Europe or Japan, or local businesses in China would immediately fill the void left by American companies. Silicon Valley chipmaker Nvidia won approval from the Trump administration to resume sales to China of its advanced H20 chips used to develop artificial intelligence, its CEO Jensen Huang announced on Monday, though the company's most powerful chips remain under US export control rules. While 82% of US companies reported profits in 2024, fewer than half are optimistic about the future in China, reflecting concerns over tariffs, deflation, and policy uncertainty, according to the survey. Also, a record high number of American businesses plan to relocate their business operations outside of China, Sullivan said, as 27% of the members indicated so, up from 19 per cent the year before. In a departure from past surveys, concerns over China's regulatory environment, including risks of intellectual property misuse and lack of market access, didn't make it to the top five concerns this year. That's likely a first, and not for a good reason, Stein said. It is not because things got dramatically better on the Chinese side, but the new challenges, often coming from the US, are now posing as much of a challenge, Stein said. Almost all the American companies said they cannot remain globally competitive without their Chinese operations. A survey from the European Union Chamber of Commerce in China in May found that European companies were cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices.
Indian Express
22 minutes ago
- Indian Express
Jaishankar in China: A cooperative Beijing is desirable, but a less uncooperative one is India's best bet
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The earlier order was facilitated through the Border Peace and Tranquillity Agreement in 1993, which agreed to incrementally resolve the boundary question through the maintenance of peace and status quo on the borders. As the treaty brought India and China to the table, it built a modicum of trust and transparency that allowed other avenues like trade to develop. This order, however, was broken with the skirmishes in Galwan five years ago. Compared to the presence of a bulwark of institutional commitments and operational trade, the new order possesses an unpredictability of conflict and weaponisation of trade. The road to a new arrangement, like most diplomatic formulations, would not be easy, quick or foolproof. The visit is one of the many steps necessary to create a positive foundation. The meeting indicates India's strategy of simultaneously cooperating and competing with China. There has always been a consensus that New Delhi and Beijing need not agree and cooperate on every issue. The optimal outcome for India would be to cooperate with China wherever possible and evade conflict entirely. Therefore, a sub-optimal outcome is more plausible for India, where they initiate piecemeal cooperation on immediate issues and simultaneously develop instruments that would restrict the chances of conflict. This would also allow both parties to find passages to de-escalate, in case a conflict breaks out. New Delhi has taken this route, evident from Jaishankar stating to his Chinese counterpart that the emerging foundation should be on the principle that 'differences should not become disputes, nor should competition ever become conflict'. There is a clear division of impending issues that need to be resolved rather quickly, while the rest are put on a slow burner. For India, there is a third kind as well: Issues that have a bearing on the relations but are extremely difficult to resolve, and as a result, remain undiscussed. The border question, in this context, remains the most significant and vexed. It is likely to be put aside for a while, again, as there are no immediate resolutions in sight. For India, the answer remains elusive to the question: How do you deal with a militarily superior power in a border conflict? India has initiated internal strengthening, but that is not going to provide results overnight. External intervention remains unreliable as this is strictly a bilateral issue where third parties would not invest or engage without interests. The plausible ways are to simultaneously keep closing the gap and engage with the rival via diplomatic mechanisms. As disengagement is underway at crucial junctures of Eastern Ladakh, the onus is now to arrange a modus vivendi. 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Time of India
28 minutes ago
- Time of India
OpenAI CEO Sam Altman on AI replacing jobs: Agree with lots of what Nvidia's Jensen Huang has been saying…
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