00:00nvidia to resume sales of ai chip to china as ceo visits beijing nvidia said it plans to resume
00:07sales of its h20 artificial intelligence chip to china days after its ceo who is visiting beijing
00:14vet us president donald trump nvidia's ai chips have been a key focus of u.s export controls
00:20designed to keep the most advanced chips out of chinese hands amid national security concerns
00:25restrictions that the u.s listed company said would cut its revenue by 15 billion the world's
00:31most valuable firm is filing applications with the u.s government to resume sales to china of the
00:36h20 graphics processing unit gpu and expects to get the licenses soon nvidia said in a statement
00:43the u.s government has assured nvidia that licenses will be granted and nvidia hopes to start delivery
00:50soon it said nvidia which has criticized the export restrictions the trump administration imposed in
00:56april that stopped it from selling its h20 chip in china also said it has introduced a new model
01:02tailored to meet regulatory rules in the chinese market the white house did not immediately
01:06respond to a request for comment the u.s government has expressed concern that the chinese military
01:12could use ai chips to develop weapons nvidia ceo jensen huang is scheduled to hold a media briefing
01:18in beijing on wednesday when he attends a supply chain expo his second visit to china after a trip
01:24in april where he stressed the importance of the chinese market the chinese market is massive dynamic
01:30and highly innovative and it's also home to many ai researchers therefore it is indeed crucial for
01:36american companies to establish roots in the chinese market huang told chinese state broadcaster cctv on
01:42tuesday supply chain video has faced increased competition from chinese tech giant huawei and other
01:48makers of graphics processing units the chips used to train artificial intelligence but chinese
01:53companies including its big tech firms still crave nvidia chips due to the company's computing platform
01:59known as cuta huang's visit is being closely watched in both china and the united states where a
02:05bipartisan pair of senators last week sent a letter to the ceo asking him to abstain from meeting companies
02:11that are working with military or intelligence bodies the senators also asked huang to refrain from
02:16meeting with entities named on the united states restricted export list the move to resume sales
02:22of the h20 chips come to mid easing tensions between washington and beijing with china relaxing
02:28controls on rare earth exports and the united states allowing chip design software services to resume in
02:33china the uncertainties between the u.s and china remain high and despite a pause in h20s ban chinese
02:40companies will continue to diversify their options to better protect their supply chain integrity
02:45said he hui research director of semiconductors at omdia the h20 chip was developed specifically for
02:51the chinese market after u.s export restrictions were imposed on national security grounds in late 2023
02:59the ai chip was nvidia's most powerful legally available product in china until it was effectively
03:04banned by washington in april the h20 ban forced nvidia to write off 5.5 billion dollars in inventories
03:11and huang told the strategy podcast earlier this year that the company also had to walk away from
03:1615 billion dollars in sales nvidia also announced the development of a new ai chip designed specifically
03:23for china called the rtx pro gpu the company described the model as fully compliant with u.s export controls
03:30and suitable for digital twin ai applications in sectors such as smart factories and logistics dot in may
03:37reuters reported nvidia was preparing to launch a new ai chip based on the rtx pro 600d in china at a
03:45significantly lower price point than the h20 the graphics processing unit would be part of nvidia's
03:50latest generation blackwell architecture ai processors and was expected to be priced well
03:56below the h20 due to its weaker specifications and simpler manufacturing requirements sources said china
04:02generated 17 billion in revenue for nvidia in the fiscal year ending january 26 accounting for 13 percent
04:10of the company's total sales based on its latest annual report huang has consistently highlighted china
04:16as a critical market for nvidia's growth
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