The US government has given chip giant Nvidia the green light to sell its advanced artificial intelligence (AI) processors in China, the Department of Commerce said on Tuesday.<\/p>\n
The H200, Nvidia’s second-most-advanced semiconductor, had been restricted by Washington over concerns that it would give China’s technology industry and military an edge over the US.<\/p>\n
The Commerce Department said the chips can be shipped to China granted that there is sufficient supply of the processors in the US.<\/p>\n
President Donald Trump said last month<\/a> that he would allow the chip sales to “approved customers” in China and collect a 25% fee.<\/p>\n The BBC has contacted Nvidia for comment.<\/p>\n The Commerce Department’s Bureau of Industry and Security said its revised export policy applies to Nvidia’s H200 chips, as well as less advanced processors.<\/p>\n The H200 chip is a generation behind Nvidia’s Blackwell processor, which is considered to be the world’s most advanced AI semiconductor and remains blocked from sale in China.<\/p>\n Nvidia has been caught in a geopolitical tug-of-war between the US and China – two sides of a global AI race.<\/p>\n Trump reversed the chip-selling restriction last July, but demanded that Nvidia pay a cut of its earnings from China to the US government.<\/p>\n Beijing then reportedly ordered its tech companies to boycott Nvidia’s China-bound chips and prioritise semiconductors made domestically. That move was designed to bolster China’s tech industry<\/a>, though experts have consistently said that the country’s chips still lag behind the US.<\/p>\n