US approves sale of Nvidia’s advanced H200 chips to China

US Greenlights Nvidia's H200 Chip Sales to China Amidst Tech Tug-of-War

In a landmark decision, the US has approved the sale of Nvidia's advanced H200 AI chips to China, marking a pivotal moment in the ongoing technology race between the two superpowers.

The Breaking Point

Nvidia, at the center of a geopolitical struggle, has been given the go-ahead by the US Commerce Department to sell its high-powered H200 semiconductor chips to China. This decision comes on the heels of a heated debate over the technological advantages these chips might confer to China.

Beneath the Surface

The allowance involves a crucial caveat: only if there's adequate supply to meet US market demands. The H200 sits just a generation behind Nvidia's cutting-edge Blackwell processor, heightening the stakes in the AI arms race. Reflecting ongoing suspicions, the US has maintained a ban on selling Nvidia's most advanced chips to China.

The Ripple Effect

The decision by President Trump to reverse export restrictions, albeit with a 25% earnings cut from Nvidia's China sales, underscores the complex dance of competitive geopolitics and economic interdependence. While critics caution that the chips might bolster China's military, Nvidia's CEO argues this global outreach is essential for US tech competitiveness.