Washington DC [US], December 10 (ANI): US President Donald Trump’s decision to permit Nvidia to sell more advanced H200 AI chips to China has provoked national security concerns in the United States and raised doubts about whether Beijing will actually want the hardware, Axios reported.
Under the approval, Nvidia may export H200 chips to China, with the US government set to receive a 25 percent share of all sales. The H200 is a notable upgrade from the H20—the deliberately downgraded model Nvidia produced under earlier export controls, which China largely rejected—but still trails a full generation behind Nvidia’s latest Blackwell series.
Trump framed the move as undoing prior restrictions, posting on Truth Social that the previous administration had pushed companies to create “degraded” products that hindered innovation and harmed American workers. Yet analysts say the practical upside may be limited: Beijing is focused on developing domestic semiconductor capacity and may not rush to buy the newly permitted chips.
Reports cited by Axios and the Financial Times indicate Chinese regulators could constrain H200 purchases by forcing buyers to prove domestic chips are insufficient. Nvidia CEO Jensen Huang acknowledged uncertainty about Chinese demand, and investor response was muted, with Nvidia shares closing down about 0.3 percent on Tuesday.
Critics worry the sales could help China improve its semiconductor capabilities by accessing US technology, though that risk may be mitigated by the fact China already holds large quantities of Nvidia chips obtained during the export-restricted period. The Financial Times earlier reported over USD 1 billion worth of banned chips reportedly entered China via black market channels.
US prosecutors recently announced they disrupted a China-linked smuggling network accused of trafficking more than USD 160 million in restricted Nvidia chips, including H200 units. In an indictment, the US Attorney’s Office warned that such flows could “compromise America’s technological edge” in AI and jeopardize national security.
Overall, Axios concluded that while Nvidia sought permission to sell H200 chips in China, the decision may offer limited strategic or commercial gains for Nvidia or for either side in the broader geopolitical competition. (ANI)
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