In yet another massive backtrack, the CEO of Nvidia has revealed that the Trump administration will allow the tech giant to sell its AI chips to China.
The Trump administration has had quite an impact on the global economy in just a few months. From tariffs tumult to trade with China, the AI industry in particular has seen its fair share of restrictions.
That has changed, though, with the California-based tech firm posting this week that “the U.S. government has assured Nvidia that licenses will be granted.”
Nvidia Announces H20 Chip Sales in China
As announced in a Nvidia blog post, the hugely prolific tech company has officially secured a deal with the Trump administration that will allow it to sell AI chips in China once again.
More specifically, Nvidia will be receiving licenses to sell the highly advanced and AI-powered H20 chip in China, and according to Jensen Huang, CEO and founder of Nvidia, there are plans for even more advancement.
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“I hope to get more advanced chips into China than the H20.” – Jensen Huang, CEO of Nvidia to MSNBC during a press conference
The announcement is just more good news for Nvidia, who also saw its valuation hit $4 trillion this week, making it the first company in the history of the world to achieve the feat.
Trump Backtracks on Initial China Restriction
In April, the Trump administration announced that Nvidia would be prohibited from selling its advanced H20 AI chips in China, because of national security concerns.
The security threat seems to have abated, though, with the Nvidia CEO making a deal with Trump to make sure the company doesn’t miss out on what China has to offer when it comes to AI.
“It’s so innovative and dynamic here in China that it’s really important that American companies are able to compete and serve the market here.” – Jensen Huang, CEO of Nvidia
The AI Race to the Top
At the beginning of his presidency, Trump made a point of getting the US in a good position to win the race for AI supremacy with some seriously big investments in the technology.
However, there have been some obstacles that are getting in the way, with representatives in his own party in Texas putting up roadblocks that could hamper the creation of data centers across the state.
Suffice to say, this deal with Nvidia could signal a loosening of restrictions on trade with China, if only because the AI race to the top is going to take a lot more collaboration than we first thought.
