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Nvidia will resume the sale of chips to China. The head of the company praises the AI models there, and new orders are already waiting for the US consent.
During the opening ceremony of the International Supply Chain Promotion Fair in Beijing, the General Director of Nvidia Jensen Huang praised China’s achievements in the field of artificial intelligence. In his speech there were favorable opinions about such models as Deepseek, Alibaba, Tencent, Minimax and Bot Ernie from Baidu. Huang pointed out that they are world -class and affect the development of the AI global ecosystem. He added that already over 1.5 million programmers in China are using NVIDIA technology to create their own solutions.
The speech took place the day after the company announced a decision to resume the supply of H20 chips to China. Nvidia had to stop their sale in April due to the new export regulations introduced by the US authorities. However, in connection with recent trade negotiations between the United States and China, some of the restrictions were alleviated. In return, Beijing declared the resumption of issuing export licenses on the elements of rare lands, which are crucial for many industries.
According to US Secretary of Trade, Howard Lutnick, restoration of sales of chip is part of wider economic conversations. China has almost a monopoly on the supplies of some rare raw materials, which gives them a negotiating advantage. In response to this, the United States decided to make concessions in terms of exports of advanced technologies.
Nvidia, acting at the intersection of the interests of two world powers, felt previous restrictions. As a result of April restrictions, the company lost half of their share in the Chinese market, and according to its data, sales in the second quarter fell by $ 2.5 billion. The forecasts indicated a possible loss of another $ 8 billion in the third quarter. Huang warned then that restrictions could strengthen the position of Huawei, which develops its own, though less advanced integrated circuits.
The new rules require that all orders from China be approved by the US government. Currently, applications for permission have already submitted, among others Bytedance and Tencent. According to Bloomberg, the resumption of exports can bring significant profits. On Tuesday, the value of the company’s shares increased by 4.04%, exceeding $ 170 and approaching record levels.
