US Approves Nvidia AI Chip Export to China, Raising Concerns Over 25% Revenue Share

The US government has approved the sale of Nvidia's advanced artificial intelligence chip, the H200, to China, a move that has sparked concerns among experts and lawmakers. The decision allows Nvidia to export the chip, which is six times more powerful than the most advanced chip available in China today, the H20, and about 10 times less powerful than Nvidia's current most advanced chip, the Blackwell. According to Jake Sullivan, a former Biden-era national security advisor who helped design AI chip export curbs on China, the move is "nuts" because it will help Chinese chip makers catch up to Nvidia's technology. "Chinas main problem in the AI race is they dont have enough advanced computing capability," Sullivan told The New York Times. "It makes no sense that President Trump is solving their problem for them by selling them powerful American chips." The H200 chip is a significant advancement in artificial intelligence computing, with capabilities that will enable faster and more efficient processing of complex AI algorithms. Nvidia's Blackwell chip, on the other hand, is currently not exportable to China due to its advanced technology. The sale of the H200 chip to China may give Chinese chip makers, such as Huawei, a significant boost in their efforts to catch up to Nvidia's technology. Huawei, China's leading AI chip maker, is estimated to be about two years behind Nvidia's technology. The sale of the H200 chip to China may help Huawei close this gap, potentially giving China an advantage in the AI race. Experts warn that this could have significant implications for the global AI industry, as China's advancements in AI could lead to increased competition and potentially even surpassing the US in AI capabilities. The US government's decision to approve the sale of the H200 chip to China has raised concerns among lawmakers and experts about the potential risks of allowing advanced technology to be exported to a country with a history of intellectual property theft and espionage. The move has also sparked debate about the effectiveness of export controls in regulating the flow of advanced technology to countries with potentially hostile intentions. The current status of the sale is that Nvidia has been given the green light to export the H200 chip to China, pending any further regulatory approvals. The company has not yet announced any specific plans for the sale, but experts expect that the chip will be used in a variety of applications, including AI research and development, data centers, and other industries that rely on advanced computing capabilities. As the US and China continue to compete in the AI race, the sale of the H200 chip to China is a significant development that will likely have far-reaching implications for the global AI industry. Experts will be watching closely to see how this move affects the balance of power in the AI industry and what steps the US government will take to address any potential risks associated with the sale.