Trump Team Internally Floats Selling Nvidia H200 Chips to China

Bloomberg

Watch Trump Team Internally Floats Selling Nvidia H200 Chips to China - Bloomberg on Dailymotion

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00:00the h200 remind us where does this chip fall in nvidia's current lineup

00:06yeah so this is the prior generation the hopper generation's most powerful chip

00:11a significantly more powerful and faster than the h20 which today they are allowed to ship but

00:18buyers are not lining up to get by the chip um significantly higher asps than the h20 almost

00:241.5 to 2x higher so a license for this chip would be huge for nvidia as you pointed out

00:30uh not the blackwell though and i'm just curious about how how powerful this is right in you know

00:36we're in this ai race this tech war and nowhere is it felt the most between the us and china so

00:42um how powerful an ai chip is it and how much of it is it a win for nvidia i mean if you put in

00:49context what china can buy today it's a significant step up from the h20s right now uh if you believe

00:56some of the benchmark comparisons the h20 today is at par with the competitive alternatives that

01:02china has so uh an h200 would be significantly better than any other chip they have access to

01:08today of course not as good as the blackwell how would you adjust your spreadsheet if nvidia is

01:15able to sell this chip to china like how does it affect the company's earnings and again this is

01:22again our reporting at at this point uh by our team including mackenzie hawkins is that u.s

01:28officials are having early discussions on whether to let nvidia sell it so this is not a done deal but

01:33if nvidia were able to do this what should investors understand about how much they'd be able to sell

01:39well there's two parts to this there's one that ability to sell right but there's also remember

01:44today they can sell the h20s but they were not able to it was just 50 million dollars of h20s that

01:50sold in the quarter and the reason being there is still that geopolitical friction between the two

01:55nations and china administration stands that they prefer their companies not buying media chips so

02:02buyers are not lining up today so there's one thing if they do get a license that opens the door

02:06for for them to able to ship but if the geopolitical tensions continue in disabling chinese buyers

02:13from buying even the new h200s then you're still not adjusting your models right i do believe that

02:20if they get a license for h200s there will be some buyers who are on the fence who will have a

02:25lot more motivation now because this is the fastest and the most performing chip they have access to so

02:31we could see some rise in the sales in the china market but again that geopolitical tension needs

02:38to really ease and china needs to open up the doors for their companies to adopt nvidia chips does it also

02:44show some sway if you will that nvidia and certainly jensen has with the white house and i just think about

02:49this past week right there was a black tie dinner with um muhammad bin saman of saudi arabia and you

02:57certainly saw jensen wong there we saw a lot of activity on social pictures of him alongside elon musk

03:04uh alongside others and i just wonder um you know it sounds like that jensen wong has a pretty good

03:11relationship with the white house is that fair uh from what we see it would be fair i don't want to

03:18speculate this way or uh reach she has inside but remember this is our just most valuable con company in the

03:25world second it's at the forefront of the ai innovation which now all major economies and

03:30regions have made their priority that they really want to be at the center of that so you would

03:36assume that it makes sense for him to be on all of those important seats that you just described

03:41hey before we let you go kunjan uh you know i'm wondering about the the competition in china right

03:47now and there's this debate that goes on okay is it better to actually let nvidia sell advanced

03:54chips to another country that might have restrictions on it versus not because if you don't sell the

04:00chips then maybe it provides an incentive for china in this example to actually develop these chips

04:06themselves is there a view that that that you fall to one side on where you know from the perspective

04:13of okay where would it where would china would china out innovate or would china try to out innovate the

04:18u.s with access or without access to these chips does it matter it does not i mean we just look at

04:26instead of speculating we just look at the past data right whenever uh we have tried and limit their

04:33access to certain technological advancements they have uh accelerated their pace of innovation in that

04:39area um there is definitely a thesis but that by limiting the most latest advanced chips you can slow down

04:47their path but i don't think you can really uh shut them off they have shown time and again um and

04:53remember they have different resources right one of the key advantages they have is they don't have

04:58any lack of power especially when it comes to green power right so the current chip solutions that huawei has

05:05while inferior to nvidia's chip to chip basis they can pull a lot of them together even if it's inefficient

05:12even if it's more cost and in terms of power they don't care they get they still are able to get

05:17comparable outcome and performance to generate ai yeah i mean bottom line it's a win for nvidia right

05:24i mean this is one of the things just 30 seconds here we talked about on the call like they didn't

05:28have any business in china so this gets them back into china potentially it definitely does yes

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