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Nvidia Resumes H20 AI Chip Sales to China, Launches New US-Compliant GPU for Local Market
2025-07-15
The move follows easing U.S.-China tech tensions and aims to recover Nvidia's losses from a $5.5 billion inventory write-off and $15 billion in missed sales.
In a significant move signaling easing U.S.-China tech tensions, Nvidia announced it will resume sales of its H20 AI chips in China, following reassurances from the U.S. government regarding the approval of export licenses. The announcement was made ahead of Nvidia CEO Jensen Huang’s visit to Beijing, where he is scheduled to attend a major supply chain expo and engage with key partners.
The H20 chip, previously banned under stringent U.S. export controls introduced in late 2023 on national security grounds, was Nvidia’s most powerful AI chip legally available in China before the ban took effect in April 2025. The ban led to Nvidia writing off $5.5 billion in unsold inventory and losing an estimated $15 billion in potential sales.
To further address the evolving regulatory landscape and growing demand in China’s AI sector, Nvidia has also launched the RTX Pro GPU, a fully U.S.-compliant graphics processing unit specifically engineered for the Chinese market. The RTX Pro is optimized for digital twin AI applications, including smart factories, logistics, and intelligent infrastructure.
“The U.S. government has assured Nvidia that licenses will be granted,” the company said in a statement. “We expect to begin deliveries shortly after the necessary approvals are finalized.”
The RTX Pro GPU, based on the RTX 6000D architecture, is designed to deliver high performance at a significantly lower price point than the H20, making it an attractive alternative for Chinese enterprises seeking advanced yet compliant AI solutions.
This strategic development comes amid thawing U.S.-China trade relations, with recent reports indicating that China is relaxing restrictions on rare earth exports, while the U.S. has allowed some chip design software services to resume in China.
Industry analysts view Nvidia’s move as a critical step in regaining momentum in one of the world’s largest semiconductor markets, especially as competition intensifies in the global AI race.
The H20 chip, previously banned under stringent U.S. export controls introduced in late 2023 on national security grounds, was Nvidia’s most powerful AI chip legally available in China before the ban took effect in April 2025. The ban led to Nvidia writing off $5.5 billion in unsold inventory and losing an estimated $15 billion in potential sales.
To further address the evolving regulatory landscape and growing demand in China’s AI sector, Nvidia has also launched the RTX Pro GPU, a fully U.S.-compliant graphics processing unit specifically engineered for the Chinese market. The RTX Pro is optimized for digital twin AI applications, including smart factories, logistics, and intelligent infrastructure.
“The U.S. government has assured Nvidia that licenses will be granted,” the company said in a statement. “We expect to begin deliveries shortly after the necessary approvals are finalized.”
The RTX Pro GPU, based on the RTX 6000D architecture, is designed to deliver high performance at a significantly lower price point than the H20, making it an attractive alternative for Chinese enterprises seeking advanced yet compliant AI solutions.
This strategic development comes amid thawing U.S.-China trade relations, with recent reports indicating that China is relaxing restrictions on rare earth exports, while the U.S. has allowed some chip design software services to resume in China.
Industry analysts view Nvidia’s move as a critical step in regaining momentum in one of the world’s largest semiconductor markets, especially as competition intensifies in the global AI race.
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