U.S. Clears Nvidia H200 Chip Exports to China in Key Policy Shift

Nvidia can now ship its advanced H200 AI chips to customers in China. The U.S. Department of Commerce approved the export licenses under a new arrangement. This decision represents a major reversal of earlier restrictive policies.

According to Semafor, the deal allows sales to vetted Chinese companies. The U.S. government will receive a significant portion of the revenue from these sales. This creates a new economic model for sensitive tech exports.

Details of the New Export Agreement

The approval comes with specific conditions. Reports from CNBC indicate the U.S. will take a 25% cut of all H200 chip sales to China. This revenue-sharing model is a central part of the new policy.

Furthermore, the chips eligible for export are not the latest versions. Semafor reports that only H200 units roughly 18 months old can be shipped. This aims to maintain a technological buffer while allowing commerce.

This move directly conflicts with recent bipartisan legislative efforts. Senators introduced the SAFE Chips Act to block such exports for over two years. The administration’s action precedes a vote on that bill.

Market Impact and Political Context

The decision carries immediate consequences for the global AI chip market. Chinese firms had begun shifting to domestic alternatives from Huawei and Alibaba. Access to Nvidia’s hardware could alter competitive dynamics.

Politically, the move ends months of uncertainty. The Trump administration had previously waffled on the issue, rescinding earlier rules. Officials framed the final deal as balancing economic and security interests.

Nvidia publicly supported the decision. A company spokesperson stated it allows American industry to compete while supporting high-paying jobs at home. The balance approved by the Commerce Department was called thoughtful.

This policy shift ensures Nvidia regains access to a critical market, though under tightly controlled conditions that prioritize U.S. economic and strategic interests.

Info at your fingertips

What are Nvidia H200 chips?

The H200 is one of Nvidia’s most advanced AI graphics processing units. It is designed for high-performance computing and artificial intelligence training tasks. Its export was previously heavily restricted.

Why did the U.S. change its policy?

The administration cited economic competition and job support in America. The new deal includes a substantial revenue share for the U.S. Treasury. It aims to let U.S. companies compete while maintaining some oversight.

What is the SAFE Chips Act?

It is a bipartisan bill introduced in early December. The Act would block exports of advanced AI chips to China for 30 months. Its future is now uncertain following this administrative decision.

How does this affect Chinese tech companies?

Approved Chinese commercial customers can now access more powerful AI hardware. This could accelerate AI development projects within China. Companies had been relying on less advanced domestic chips in recent months.

What was the Chinese government’s reaction?

U.S. officials indicated a positive response from Chinese leadership. The Chinese internet regulator had previously banned domestic firms from buying Nvidia chips. The new approved channel likely reshapes that dynamic.