Nvidia Resumes H20 GPU Sales as U.S. Approvals Unlock AI Market

- Nvidia ships modified H20 GPUs to China that are compliant with U.S. export controls. - Tencent expresses interest. Nvidia has developed its modified H20 graphics processing units (GPUs) for China to comply with U.S. export controls updated in October 2023. This decision marks a pivotal move amid increasing demand for advanced AI technologies. At the Computex forum in Taipei in June 2024, Nvidia CEO Jensen Huang praised Chinese tech firms as "customers and partners," highlighting the importance of regulatory compliance and emphasizing that the company designed these GPUs specifically to meet U.S. export controls. During the Computex forum in Taipei in June 2024, Nvidia CEO Jensen Huang described China’s AI innovators as "customers and partners," while also praising domestic innovators such as Alibaba, Tencent, and Baidu for their contributions. His first visit to China in four years in January 2024 underscores Nvidia’s strategic focus on the region and its robust AI development market. Major Chinese tech giants like Alibaba, Baidu, and Tencent have tested H20 samples and placed orders. Their orders, however, are significantly smaller than what they would have purchased of unrestricted chips. Production of the H20 chip began in the second quarter of 2024. In addition to the H20, Nvidia also unveiled its L20 and L2 GPUs. The company designed these chips exclusively for the Chinese market, and they fully comply with U.S. export policies. The product targets advanced applications, such as smart factories and logistics, enabling the creation of digital twins, which are virtual models used to enhance industrial workflows and optimize systems.