Nvidia’s H20 Resumes Sales, Spark $15–$20 Billion Chinese Windfall

Nvidia has confirmed it will resume sales of its H20 AI chips to China, marking a dramatic reversal months after tight US restrictions froze shipments to the vital market. The announcement triggered a stampede among Chinese tech giants eager to secure limited chip supplies.

The new approval could add $15 billion to $20 billion in unexpected revenue this year for Nvidia, whose bottom line tumbled with a $4.5 billion write-off when earlier export bans stranded H20 inventory in warehouses.

How did US export policy changes fuel Nvidia’s H20 comeback in China?

After months of high-level negotiations and growing pressure from both industry and policymakers, US authorities assured Nvidia that licenses would be granted to restart H20 exports. Key meetings between CEO Jensen Huang and officials in Washington and Beijing set the stage for this sudden thaw.

The H20, originally created to comply with US export rules, is less powerful than Nvidia’s flagship AI chips but remains critical for Chinese companies desperate to keep pace in the AI arms race. ByteDance, Tencent, and Alibaba are leading a surge of orders, eager to build advanced AI services despite ongoing restrictions.

Did you know?
Nvidia’s H20 chips were specifically designed to comply with US export controls, making them uniquely legal for AI development in China’s top companies.

Will Nvidia’s new chip models for China cement its dominance in AI hardware?

Alongside the H20 comeback, Nvidia has unveiled a brand-new chip, the RTX Pro GPU, tailored specifically for China and fully compliant with export laws. Engineered for demanding industrial tasks such as smart manufacturing and logistics, this model extends Nvidia's platform deep into businesses that rely on high-performance AI.

Nvidia’s CEO is publicly optimistic, saying the company aims to deliver even more advanced chips to China if permitted in the future. The strategy ensures US-designed hardware remains central to global innovation while positioning Nvidia as a primary supplier in both open and restricted markets.

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Chinese tech giants know the clock is ticking for AI hardware access.

Demand from China is surging as companies hurry to join Nvidia’s approved buyer list, known as a “whitelist,” to secure shipments before any policy changes close the window. China's relatively slow progress in developing domestic AI chip alternatives, which struggle to match Nvidia's performance and software ecosystem, fuels the urgency.

Despite the revived access, all chips heading to China remain restricted in raw computing power, consistent with US security concerns. Still, H20 and RTX Pro GPUs give Chinese developers vital tools to continue AI research, natural language processing, and large data modeling needed by fast-growing tech firms.

A Washington-Beijing thaw hands Nvidia a windfall—and China a technology lifeline.

The US government’s green light arrives amid broader trade talks and uncertainty over critical supplies, including rare earth elements needed for chip production. The policy shift has also lifted Nvidia’s stock price, signaling global investor confidence in renewed revenue streams from Asia.

The Trump administration views this move as a pragmatic balance. US technology companies maintain a degree of influence over Chinese advancements, while export controls and licensing requirements remain firmly in place to address national security priorities.

Nvidia’s rapid pivot and new chip designs for China show how leading tech firms are adapting to an era of geopolitical fragmentation. Both sides, for now, look set to benefit, though the race to homegrown alternatives is just beginning in Beijing’s innovation labs.