Nvidia Resumes H20 Chip Sales to China.

After long wait, Nvidia resume H20 chip sales to Chine, which is AI chip and in high demand for AI products.

🎯 What Happened?

• On July 15, 2025, Nvidia got official clearance to resume selling its H20 AI chips to China.

• This reversal came after U.S. Commerce Secretary Howard Lutnick said that export licenses would be granted soon

🤝 Why Now?

1. Trade Deal with Rare Earths:

   • This move is tied to a broader trade agreement on rare‑earth magnets.

   • Allowing H20 exports was part of this negotiation

2. Strategic Control:

   • H20 is considered “fourth‑best” in Nvidia’s lineup, less powerful than its top chips.

   • The U.S. is comfortable exporting it, while keeping China from buying the most advanced models

3. Lobbying & Leadership:

   • Nvidia’s CEO Jensen Huang personally met with former President Trump, which helped influence the decision

   • Nvidia will now request licenses and hopes to resume shipments soon

📉 Impact on Nvidia

• Nvidia’s stock rose 4–5% after the announcement .

• The pause earlier this year triggered:

  • ~$4.5 billion inventory write‑down, and

  • ~$2.5 billion lost projected Q1 revenue

🌐 Why It Matters

• China Market: Nvidia made $17 billion from China last year — about 13% of revenue

• National Security: U.S. lawmakers worry that even older chips like H20 might aid China’s military AI

• Global AI Tech: Allowing H20 keeps Chinese developers using Nvidia’s ecosystem (CUDA and software tools).

  • This supports U.S. influence and slows China from building independent AI tools .

📦 What is the H20 Chip?

• A less powerful GPU, designed to comply with U.S. export rules.

• It’s still strong and widely used, just not the newest or top-tier model

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✅ Fast Summary

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Nvidia’s has now finally able to sell chips to China and make AI products more competitive.