US technology giant NVIDIA said it will soon resume sales of its high-end artificial intelligence (AI) chips to China.
The U.S. government assured the company that it would grant the licenses needed to restart exports to the world’s second largest economy, the company said in a blog post.
The move reverses a ban on NVIDIA’s sale of H20 chips to Beijing, which was imposed by the administration of U.S. President Donald Trump because of concerns that Chinese military can use them.
These chips have been the focus of export controls, aiming to put cutting-edge technology in Beijing’s hands as the AI race between the United States and China is growing higher.
The U.S. Department of Commerce did not immediately respond to a request for comment from the BBC.
After the Biden administration implemented U.S. export restrictions in 2023, it specially developed H20 chips for the Chinese market. The Trump administration effectively banned its sale in April this year.
The announcement was because trade tensions between Beijing and Washington have been eased.
In May, two governments agreed to a temporary truce in the tariff war.
Since Trump returned to the White House this year, they have set an August 12 deadline to reach a long-term deal on the high tariffs imposed on each other.
Beijing has eased trade controls on rare earth exports in recent weeks, while the United States has lifted restrictions on chip design software companies operating in China.
NVIDIA has long regarded China as a key market, and the country ranks among the world’s top buyers.
NVIDIA CEO Jensen Huang spent months lobbying both sides to restore sales of Chinese H20 chips.
Mr Huang, currently in China, has met with Trump to reaffirm Nvidia’s commitment to creating jobs and ensuring U.S. leadership in global AI, the company said.
Mr. Huang also met with Chinese government and industry officials to discuss ways in which AI can improve productivity and security research.
