Nvidia Gains Approval for AI Chip Sales to China
The U.S. government has granted Nvidia the ability to sell its H200 AI chips to approved customers in China, marking a significant opportunity for the company. The arrangement will see the U.S. government taking a 25% cut from sales of the advanced chips, which are approximately six times faster than their predecessor, the H20 chips.
This decision follows previous restrictions, where Nvidia’s earlier H20 chip sales were hampered by the Chinese government due to security concerns. Nvidia’s CEO has estimated that the Chinese AI market could be worth around $50 billion within the next two to three years, providing substantial growth potential for the company, which reported revenue of $57 billion in its latest earnings, a 62% increase from the previous year.
