(CTN News) – Nvidia, the American technology behemoth, will resume the sale of its H20 artificial intelligence processor in China after the Trump administration relaxed export restrictions.

This follows the administration’s decision to eliminate export restrictions.

The company had obtained assurances from the White House that it would grant licenses for the product to be marketed in the Chinese market, according to a blog post that was published Tuesday. In the blog post, the corporation disclosed this information.

The government blocked the transmission of the chip to China in April, citing concerns that the technology could be used for military purposes. Consequently, the administration has altered its course of action as a result of this decision.

Export control would last a “indefinite future.” Nvidia told the company.

Nvidia disclosed in May that the inventory costs had decreased by $4.5 billion (or €3.8 billion) during the April quarter AS A RESULT OF. Additionally, the organization noted that the limitations had resulted in a substantial additional income loss of $2.5 billion (€2.1 billion).

The company’s share price encountered a brief decline as a direct result of the announcement. The H20 chip was developed with the explicit intention of catering to the Chinese market, in compliance with the constraints imposed by former President Joe Biden in 2023.

During his tenure, President Trump altered the restrictions that had been established during the administration of Vice President Joe Biden. However, he also imposed a number of restrictions on the H20 artificial intelligence engine that Nvidia was in the process of developing.

On the same day, Nvidia unveiled a new artificial intelligence processor that was specifically engineered for China and was “fully compliant” with export regulations.

This Nvidia processor was exclusively designed for China.

Jensen Huang, the CEO of Nvidia, has been working assiduously in both the United States and China for several months to achieve the breakthrough that was announced on Tuesday.

Huang asserted that the restrictions imposed by Trump were a “failure” in the sense that they were enhancing China’s artificial intelligence capabilities. This was especially true because the market was unable to depend on the production of products in the United States by the time the restrictions were implemented.

Conversely, Chinese artificial intelligence companies, including DeepSeek, capitalize on semiconductor exports by employing Nvidia processors in their manufacturing processes.

The accord is being announced at this time, following a substantial improvement in relations between Washington and Beijing in the past few weeks.

President Trump’s administration declared its intention to implement a 145% tariff on Chinese products that were being transported to the United States at the outset of the year.

In response to the circumstances, Beijing implemented a retaliatory tariff of 125%. In May, the two parties reached an agreement to reduce these responsibilities. Following this, they reached a decision regarding a trade framework approximately one month ago, which was based on their collective agreement.

In order to facilitate the export of raw materials and other essential technologies,

The trade agreement aims to reduce the existing obstacles. Donald Trump had previously stated that the H20 artificial intelligence processor’s restrictions would not be relaxed as part of the framework, despite the fact that this is the case.

Both China and the United States are making significant efforts to identify a sustainable solution that can supplant the temporary trade truce that has been in effect prior to the August 12th deadline.

Huang, who is employed by Nvidia, is presently in Beijing to negotiate with government officials, following a meeting with President Trump the previous week. These discussions are occurring in the aftermath of the meeting.

Furthermore, the chief executive officer stated that the organization plans to concentrate on the Chinese market by creating a new graphics processing unit, or “RTX PRO.” According to him, this new agency will adhere to the export limits established by the United States of America in full conformance.

SOURCE: EN