Nvidia wins OK to resume sales of AI chip to China after CEO meets Trump
The turnabout comes after the Commerce Department restricted sales of the chip in April, costing Nvidia billions of dollars. It is welcome news for the $4 trillion chip company and Huang, who is visiting Beijing this week.
The administration said Nvidia would be allowed to sell the H20 chip after licenses are granted by the Commerce Department, according to the company. Nvidia said it would begin deliveries soon. In addition, it said it has developed a new chip with lower performance that meets all U.S. export criteria so it can be shipped to China.
The approval could be seen as a gesture of good faith by the U.S. in its trade talks with China. Access to chips and advanced technology has been a main priority for Chinese negotiators.
The license approvals will be some of the only licenses being granted by the Trump administration, which is restricting exports of AI chips and other products to protect national security.
Huang plans to meet top Chinese officials during his stay in Beijing, people familiar with the matter said.
Huang met Trump last week, attempting to persuade the president that his company should be allowed to continue to do business with China and tap AI talent there, according to people familiar with the meeting.
Huang told Trump that Nvidia should be allowed to sell its technology freely to most parts of the world so American companies can dominate AI instead of Chinese companies, the people said. The CEO also discussed similar topics with Commerce Secretary Howard Lutnick, they said.
The globe-trotting Huang has become one of the world's most recognizable executives because of AI's growing prominence in the global economy. Nvidia chips are vital for cutting-edge data centers that train AI models and operate AI applications. Few companies are caught in the U.S.-China trade war as much as Nvidia, pushing Huang to spend more time making his case to politicians.
Write to Raffaele Huang at raffaele.huang@wsj.com and Amrith Ramkumar at amrith.ramkumar@wsj.com
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