Nvidia has announced its plans to resume sales of its AI chips in China after receiving assurance from the U.S. government that licenses will be granted. The company is set to deliver its H20 chips, which are the most capable chips it can sell in China, following a ban imposed by President Trump and continued by President Biden. Nvidia CEO Jensen Huang emphasized the importance of selling chips in China to maintain the company's position as a global AI leader. Chinese tech firms, including ByteDance and Tencent, are reportedly eager to place orders for Nvidia's GPUs, while investors have reacted positively to the news with a bump in Nvidia's stock value.
Chinese companies continue to favor Nvidia's computing platform CUDA, which provides parallel processing capabilities crucial for AI development. The resumption of sales in China is expected to have a significant impact on Nvidia's revenue, as the country accounted for 13% of the company's global sales in the previous fiscal year. With the potential to regain its foothold in the Chinese market, Nvidia is poised to capitalize on the growing demand for AI technology in the region.
